December 13, 2021

Fed Week: Bracing For Impact

Oliver Grah

Dec 13, 2021

Introduction

Yes, we all would like to see the crypto markets turn bullish again and continue their moon mission… But is it likely that crypto prizes will blast off today or tomorrow? Most likely not.

zerohedge @zerohedge

Asian crypto selling has resumed

The fact is that all eyes are on the Fed this week and how the stock markets will react to its decisions… Will we see a fear-induced sell-off leading into the FOMC meeting on Wednesday (where we expect the announcement of accelerated tapering), or a nuke afterward? Hard to tell since it depends on how much of the Fed hawkishness is already “priced in” and how the markets will interpret the Fed’s words… However, with a high likelihood, we can expect nervousness and choppiness until at least the middle of this week!

Darius Dale @42macroDDale

Good morning and God bless! Reallocate your #FocusBudget to the #NextPlay. Pivotal week for asset markets with 20 central banks providing policy updates w/ many tightening at the margin including the Fed. Both the USD and global bonds love it as much as crypto hates it.

Market Outlook

It’s a big week for global asset markets: After years of seemingly unlimited money printing, which fueled a massive “everything bubble” and led to “up only” market sentiment, we are now in for a possible major policy shift that will alter the macro investment climate.

Since the investment climate for risk assets is more than uncertain in the short- and possibly mid-term, we advise you to have your risk management in check, which involves proper position sizing and a low-time preference.

Don’t forget: Crypto and Web 3 are the future, even if markets are shaky for a while. It’s all about managing risk and seizing opportunities when they arise!

6529 @punk6529

gm remember, it is a sprint AND a marathon. You need to manage yourself accordingly. let's get 'em

What is a good example of how not to approach this market? Well, how about aping into meme coins like DOGE or SHIB when everyone and their friends are talking about them? As you can see in the chart below, DOGE is a picture-perfect example of how bearish distribution to “the herd” looks like…

cobie @CryptoCobain

Remember when doge was going to $1

Here is a message that, unfortunately, many people have and will not take seriously until it’s too late: If crypto gains have the potential to change your life, take them – even if only a portion!