Why is the market currently causing a certain panic and the reason for the decline?
Many people may not pay attention to the overall market. If you play with coins. Or you just keep idle funds for a long time and don't pay attention to the market, just hold it and don't pay attention to any market. What about the second one. Or you can always pay attention to a change and forecast in the market. "The 12th and 13th are worth paying attention to tomorrow and the day after tomorrow"
At present, the Federal Reserve is facing the challenge of a tightening interest rate policy, especially after the unexpected employment data released last Friday, the market's expectations for the Federal Reserve to cut interest rates have fallen again. The strong job market, especially the rebound in wage growth, indicates that the pace of inflation may fall slower than expected, which may make the Federal Reserve pay more attention to controlling inflation rather than stimulating the job market when making policies.
If the inflation data in May continues to be strong, the possibility of the Federal Reserve cutting interest rates this year will be greatly reduced. This week, we need to pay attention to the Federal Reserve's interest rate decision. It will hold a two-day policy meeting from June 12 to 13, and publish a summary of economic expectations and interest rate dot plots. This information will become the focus of market attention.
From the current analysis, the Federal Reserve's policy determination seems to have increased, mainly due to the strong and continuous economic data. The Fed needs more time to assess the economic situation, so the market generally expects that the Fed may only cut interest rates a limited number of times this year, or may not cut interest rates at all.
It is worth noting that although last week's non-farm data exceeded expectations, the rise in unemployment shows that the Fed needs to avoid overcooling the economy while curbing inflation. This complex economic environment may be one of the reasons why risk assets including Bitcoin have fallen relatively little recently.
