Wednesday is CRUCIAL!
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Right now, nothing else is as important for crypto. Here's a simplified breakdown for new traders:
- **Wednesday's Key Events**: CPI news, the Federal funds rate announcement, and the FOMC meeting.
- **Federal Funds Rate**: Expected to remain at 5.5%, a near certainty that's already priced in.
- **CPI Data**: Anticipated to be as predicted, with a possible 0.1% Y/Y drop.
- **FOMC Meeting**: Likely to indicate that further progress is needed on rates, which could lead to volatility. The FED will need more data in future readings, although surprises can happen.
Last Friday's jobs data shook the crypto market because it makes a July rate cut nearly impossible. It also suggests we'll likely see only one interest rate cut this year instead of two.
For those unfamiliar with interest rates: a drop in rates is favorable for crypto as it can lead to more investment.
**My Thoughts**:
- The market seems slightly bearish for most altcoins currently.
- BTC spot ETFs have had 19 consecutive days of positive flows, indicating institutional investors still see value in BTC at $65k-$70k.
- Large investors view BTC as a store of value, making a significant drop in BTC dominance and a subsequent parabolic altcoin cycle unlikely.
At current market prices, BTC and ETH are the best long-term investments. Other solid long-term plays include SOL, BNB, TON, and DOGE, but they shouldn't comprise the majority of your portfolio. If investing in other projects, limit it to 10-15% of your bankroll for long-term spot holdings.
I hold various coins and tokens bought at lower prices, and I anticipate potential further price drops in the coming weeks to months. I don't believe we are currently in a dip.
This is just my perspective. If you have done your research and made informed decisions, follow your own path. Feel free to ask questions anytime.
Peace,
