Expert Tells Investors To Be Careful In The Cryptocurrency Rally, Why’s That? - ADVFN

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Name	Symbol	Market	Market Cap ($)	Algorithm
Cardano	ADAUSD	Crypto	15,920,881,616	Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-0.0001	-0.02%	0.4538	0.4539	0.454

High Price	Low Price	Open Price	Prev. Close	52 Week Range
0.4556	0.4507	0.4542	0.4539	0.216009 - 0.810200

Exchange	Last Trade	Size	Trade Price	Currency
BSTP	02:34:29	23.16	0.45404	USD

Price x Volume	Volume	Base Symbol	Related Pairs
476,108.47	1,051,035.68	ADA	ADAEUR	ADAGBP	ADABTC

Expert Tells Investors To Be Careful In The Cryptocurrency Rally, Why’s That?

29/07/2022 12:30pm

NEWSBTC

A crypto influencer, Alfonso Peccatiello, expressed his thoughts as regards the recent cryptocurrency rally. He stated that the current crypto rally is not a yardstick for investors to raise their hopes too high. This was revealed following the increase in certain digital currencies such as Bitcoin and Ethereum in the last 24 hours. A recent crypto market watch showed a 24-hour price appreciation of Bitcoin of more than 9%. Currently, BTC trades at a price of over $23,000. Meanwhile, Ethereum, the second largest digital currency, has also experienced a rise in its price. Its 24 hours price increase got over 13%. Presently, the token trades at a price above $1,600. The surge in the prices of these cryptocurrencies followed the Fed’s decision to hike its interest rate by about 75 bps. Alfonso’s Thoughts On The Current Rally A renowned crypto expert and author of The Macro Compass, Alfonso Peccatiello, gave his thoughts concerning the current crypto rally. According to Peccatiello, the recent digital currency surge should not be a reason for investors to be excited. He stated this, backing it up with an explanation. Related Reading: Bitcoin Makes Surprise Climb As Fed Discloses 0.75 Point Rate Bump Peccatiello first admitted that the speech of the Fed chair, Jerome Powell, triggered the rise in the prices of cryptocurrencies. But, there is a need for his speech to be guided. He added that if his speech lacks a backup, it will be a cause for alarm in the crypto market. Furthermore, he uncovered his portfolio, stating that he has little interest in risky assets. One of such risky assets is digital currencies. Trigger For Cryptocurrency Rally Drawing from Peccatiello’s speech, the increase in the prices of these digital tokens commenced after Powell’s statement. He added that Powell stated a relationship between inflation and neutral interest rates. Powell also cited that the Fed’s operations will base more on data. This results from the recent hikes of about 75 basis points. According to Peccatiello, the Federal Reserve would be a dreadful zone if it repeats its interest rate hike over time. Powell is more careful now that the Fed feels they reached neutral rates: why? Because every time the Fed hiked above that (restrictive policy) it ended up breaking something. Every single time. pic.twitter.com/OkQ51xzipB — Alf (@MacroAlf) July 28, 2022 Then, Powell made another statement, which happens to be a good cause for concern. He cited that there is another alarming increase that could be the trigger for the next meeting of the FOMC, scheduled for September. Related Reading | Why Cardano (ADA) May Breakout In A Bull Run To $1 His final statement pointed to the fate of digital currencies and their yields. He revealed that there is a need for the Fed to carry out an aggressive tightening. Peccatiello stated that this action is necessary to prevent the decline of actual yields. Moreover, with reduced yields comes low performance in the crypto market and other risk-driven assets. Featured image from Pexels, chart from TradingView.com

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