I told you all this week was gonna be pretty crazy and it turned out out to be true. But for all the wrong reasons. But the consumer confidence fell a third straight month. The feds raised interest rates by 75 basis points and quarter two gdp results were negative confirming that the us is now officially in a recession.

Well how did the markets react bitcoin is now up over seven percent for the week. The dow jones is up four point five percent and both the s p. And nasdaq indexes gained over four percent so pretty interesting when you get bad news from macroeconomic data. You would assume that the markets would go down.

But the opposite is happening so what i wanted to do in today's video is explain why the markets are closing the week with green strength despite the poor macroeconomic factors. And i also want to talk about bitcoin's price action take a look at the weekend's possibilities on what you should expect now if you guys are vibing with these daily market updates be sure to like this video down below happy friday subscribe if you haven't done so already and let's see what's happening for the markets. Today. So the major wall street indexes like i said are all in the green.

Even this morning. Following solid earnings from tech giants. Such as apple and amazon. Now the s p.

500 today is up one percent nasdaq and jones are both up about 125. And amazon pretty much was the big winner today. They're up about 10 this morning as they went ahead and reported stronger than expected sales from quarter. Two and on top of that apple is up almost four percent after posting better than expected iphone revenue.

It's pretty insane how the markets have reacted the past few days despite there being a overall large rate hike and the official beginning of a recession. So at the time of research bitcoin is right under 24 000. It still had a pretty strong week and on the four hour charts bitcoin was crazy volatile this week and in the past few days. It went from anywhere at the 20 000.

Range over even into the 24 000. Range. Now. The current trading range over this weekend.

Is going to look to be at around 22 500. And upwards towards the 24 250 level earlier this morning bitcoin did briefly break above the key resistance level. Which is going to be the top orange line that you see on your screen. Which is the 24 000.

At 250 mark. But it was not able to maintain and support that price now the rsi. Though is still over 70. Which is considered overbought and what we're seeing from the charts is that we could expect to see a bit of a cool down or a pullback happening throughout this weekend.

Now ideally that would still work in the favor of the bulls. Because if we do want to see any type of additional momentum it would be best if bitcoin does drop back down to re test the 22 500 level. Which is going to confirm strong support at this level and bitcoin has not broke past that level on the way up over the past week. And still is going to be looking for what that support level is going to stay at now focusing a bit more on the weekly.

Though bitcoin is back above the 200 moving average. And has had a pretty incredible two consecutive weeks. So bitcoin is now currently up 7 for the. Week and it also gained about 86.

Last week. Now with that noted there are two possible scenarios that we could see close out. Before the sunday hits. So on a more bullish side.

If bitcoin closes above the 200 moving average. This would be amazing news that would then be claimed the support as we just mentioned. But if we do see a bit more bearish news bitcoin will drop below the 200 moving average before sunday. Which confirms the 200 moving average is still the resistance not the support and this would also mean a prolonged market low and a possibility of seeing some more lows.

Coming up ahead regardless. Though of this short term volatility. Seeing a little bit of red in the market ethereum is still above sixteen hundred dollars having an absolute fire week. Very good job ethereum my collapse to them going into the big 24 hour.

Winners. We have oasis also known as rose. Which is up 23 in the last day up 41 in the last seven days. Bitcoin gold back on the charts up 20 alongside many other all coins.

Even chain link now at seven dollars 80 cents. Uh and some other cryptocurrencies here that are having a solid green day all right so ladies and gents let's focus on the question that a lot of people have on their mind. And that is why is crypto up despite the rate hikes and despite bad macroeconomic news. So normally interest rate increases means that riskier investments such as bitcoin all coins.

Whatever your cup of tea is within the crypto markets aren't going to be as appealing to investors and the rule of thumb is that higher interest rates lead to capital flowing into safer investments. This is why people will put their money into a savings account and even though the savings account might yield you over one to two percent. Now just because of those higher interest. Rates.

You will still get eaten up by inflation. Inflation is still nuts right now. And this is why a lot of the top dogs or some of the old school investors look to investing into other traditional assets. Such as even precious metals or bonds or just.

Things. That will yield you a much safer return during this time. Now. The first rate hike in key interest rates happened back in may of 2022.

Just a few months back. And it's already set the tone for the new monetary policy. So in the first half of 2022 keep in mind massive amounts of capital flowed from cryptocurrencies to other forms of investment. Large institutional investors in particular sold bitcoin and other cryptocurrencies massively just huge amounts and this led to that massive sell off leading to even terra luna collapsing.

Then the celsius exchange and voyager all halting so that was really the catalyst and since then we've almost been in this stagnant floating water. Now here's what i believe and why the markets actually responded well despite all the bad news. I believe the new monetary policy. That has been established and riskier assets are all now adjusted already to the new monetary policy on top of that interest rate increases are now seen as a positive signal that the central banks are taking the problem of inflation seriously and this can also ensure a positive mood on the market which we've seen happen this week.

And it can also lead to other riskier assets other speculative things like they would say happens with the crypto markets being bought up again. So here's a quick summary of macroeconomic conditions and how it's tying in with crypto now the 075. Increase in the key interest rate was already expected by the financial markets and therefore with that being said this did not cause share prices to fall instead we saw cryptocurrencies rising knowing that we have all this bad stuff coming ahead. The market had already adjusted on top of that the key interest rates give light at the end of the tunnel.

Like we said now that inflation is noted now that it's recognized and they're doing something about it we can note that there is still hope that things will get better eventually. The policy of cheap money has also helped investments massively in recent years especially through the pandemic with all the stimulus and helicopter money we experienced. But as you know we also saw massive accelerated inflation and right now with the monetary policy increasing interest rates. It's still going to balance us out.

That's the whole point of it. And if inflation can get lower and we start returning back to that bull market. That is when things are going to look a lot better the big thing to note is that it seems like the markets right now are getting numb to the rising interest rate and it seems like they're able to overcome any type of adjustment that the fed decides to make so we're seeing proof of this evidence is clear cryptocurrencies continue to rise at the moment. Including even stocks they've had a great week.

So far this is why we could have easily said on our channel with this upcoming week of all this bad news. That we know is going to come up we would have seen the markets go down. That is never the case. We saw exactly what i said.

Which is volatility now on the more optimistic side. If we don't see any type of huge negative terrible news coming from the markets. There is a possibility we could see another rally form short term this could be part of that relief rally which i don't think we've hit yet and this would mean cryptocurrencies. All coins and other assets would rise temporarily all right so with all that being noted.

What should you be doing next. What is the game plan moving forward till the end of this year. So i know a lot of people might be experiencing some short term fomo just because this week was strong and if you invested during the bottom of just say even ethereum you'd be up over 90 since that market bottom that we had just a few weeks back i would say there's still going to be a ton of opportunities and i would say even amidst this short term action that we're seeing there is still long term potential of having really good returns. If you were to start dollar cost averaging anytime soon now for me personally.

I'm still holding off on the market. I still want to see better confirmation and even though. We were able to get some green just this week only time will tell exactly how the trends are gonna play out for the rest of this year. I'm in expectation that a bear market could last anywhere from eight months from now six to 12 months that could be the average that period.

So i'm bringing in eight months. I could always be wrong. But if that's the case just know that even in bear markets. There's always an opportunity to make money and i do think there's still a huge shot that you guys can come out winning.

And it's all about just staying educated moving forward and understanding that the green days are here to come now on monday. We're going to be going over some pretty cool ethereum news. We're going to be talking about what's coming up what's going to influence our decision because i'm very bullish on it this is something i mentioned way earlier in this year. And if you guys have been following me within the discord.

I've been talking about this within our own personal community. Just how bullish. I have been with ethereum despite all of its dips. We'll see what happens by the end of this year.

But with all the upgrades that are taking place. I am just pretty hopeful at least with ethereum as long as the markets. Just don't take like another huge dog dookie that that will still outperform. Most assets now only time will tell though we'll see.

But we'll get to a certain point within even these markets. Where the downside is only so much there's only so much downside before you realize the upside potential outweighs. It on a two to three or even a four to one basis. So if you guys have ever done any type of sports betting.

There's usually odds placed on a winner whether it's horses or you know you're betting on a team or a fighter. There's usually odds right. Now the odds that crypto could continue further going down yes. It is there but taking a look at the data of the all time charts of just the previous bull run.

I would say the upside or the odds. The upside is still much higher taking a look at it logically. If you're going long. I don't think.

It's still a bad time to start dollar cost averaging into the market. Something we've been saying for a very long time on this channel. And if you've been following along you'd be definitely in the green right now but anyways that is going to be today's video not much else is going on within the market. If you guys did enjoy.

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And i'll see y'all. Soon peace.