Crypto Market Insight Sep 2022 | Ewpple

 

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Ewpple - Crypto Market Insight Sep 2022

Fed Watch - Interest Rate Increase Vs Crypto Market

Current Situation
Even if it leads to recession, the Federal Reserve aims to force down inflation by increasing interest rates aggressively. CPI/inflation is likely to fall as the Fed Funds Rate rises. The Fed will hold the Fed rate greater than inflation (the Crossover Point) until inflation subsides.

Market Reaction
Markets drop when they expect an aggressive Fed (e.g., high CPI data), and vice versa when favorable data is released. Noises like these don't matter. For the foreseeable future, markets will remain at the bottom. It will move uptrend only as the crossover point approaches.

Economic Data
US Aug Inflation Rate YoY 8.3% - Fed target 2.5%.
US Aug Unemployment Rate 3.7%.
Fed Funds Rate 2.5%.

Investor Action
There is no need to panic sell when the total crypto market cap is less than US$1T. Invest during market lows to accumulate assets. Dollar Cost Averaging is the most effective strategy to buy into an index fund like Ewpple DeFi Crypto Index Fund (EWD).

Ewpple DeFi Crypto Index Fund (EWD) lost -13%.
Benchmark index lost -23% in the same period.
Benchmark index = S&P Cryptocurrency MegaCap Index (SPCMC) + Decentralized Finance Index (DEFX)

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