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@cryptosport The worse, the better
Every time data on the U.S. economy is released, there are readers in the chat room who wonder why good data is bad for the markets. To avoid writing the same explanation all the time, let's make this short post and just link to it.
➡️ A stage of high refinancing rates usually means that the Fed is struggling with inflation. And it will keep rates high until inflation reaches target levels, or until the economy gets really bad because of expensive credit. Therefore, when good data comes out (e.g. low unemployment, high business activity index), the Fed realizes that rates can be kept high because the economy is feeling good. Consequently, this is bad for the stock and crypto market. The only good statistics that will be good for the markets is a decrease in the growth rate of inflation (any of its components).
Therefore, for example, on January 7, when good data on the labor market came out, we saw a strong decline in both indices and crypto. 3 replies
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