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Powell + Trump + US stock earnings collectively bomb the account
Powell has said goodbye to being the Federal Reserve Chair, but he still needs to keep serving as a Federal Reserve governor until 2028. And Powell said that high inflation makes the market think the probability of future rate hikes is higher than the probability of rate cuts—this is the first round of bombs.
Then this morning, Trump also said he wants to bomb Iran again, forcing Iran to make concessions on the nuclear negotiations—backing down—that’s the second round of bombs.
The third round is that the US stock earnings from Microsoft, Google, and Amazon are all good. So over the past half month, US stocks have been rising every day—basically all with mouse-trading ahead of time, having run up early. And since future AI spending will also increase, meaning more money being spent, profit-taking in US stocks is smashing the market—this is the third round of bombs.
Honestly, I have no words. Today’s super news day is nothing but bearish.
Powell rate-hike probability + Trump bombing Iran + US stock profit-taking smashing the market = a collective plunge in the financial markets.
In the crypto world too, BTC Bitcoin has collapsed, with the lowest drop down to 75,000—looks like the sky is falling.
But if there are so many bearish factors and Bitcoin can still hold up at 75,000, then at least that’s still okay.
79,500-75,500 = down 4,000 dollars. High-leverage contract traders got liquidated one after another—the dog-managers (market makers) really went in hard.
Do nothing, keep holding on and wait for these bearish factors to burn out, and then it will V-rebound to above 80,000 before you can close longs and rest $BTC