LIVE FOMC 🚨 Jerome Powell Announcement (Bitcoin & Crypto Markets React!)
🎯 Summary
Podcast Summary: LIVE FOMC 🚨 Jerome Powell Announcement (Bitcoin & Crypto Markets React!)
This 91-minute live stream focused on the immediate reaction of financial markets, particularly Bitcoin and cryptocurrencies, to the Federal Reserve’s Federal Open Market Committee (FOMC) announcement regarding interest rates, featuring commentary from the host leading up to and immediately following Jerome Powell’s press conference.
1. Focus Area: The primary focus was the live reaction of crypto and traditional markets (SPX) to the FOMC decision. Secondary themes included detailed technical analysis of specific crypto assets, discussion of macroeconomic policy (interest rates, inflation), and promotion of specific altcoins and community engagement (Discord/memberships).
2. Key Technical Insights:
- Trade Entry & Volatility: The host executed a leveraged trade based on an anticipated double bottom formation, highlighting the extreme volatility immediately following the announcement, which caused rapid P&L swings (up $500, then down significantly).
- Altcoin Performance Divergence: While the broader market struggled post-announcement, Arrow Drum (ARDR) was noted for strong, sustained performance, attributed to positive news flow (e.g., Coinbase integration, regulatory developments in Israel).
- Kita (KTA) Accumulation Zone: The host identified Kita as a high-potential, high-speed blockchain project (claiming 10M TPS) founded by figures associated with Google (Eric Schmidt mentioned). They advised watching for accumulation during its current pullback from all-time highs, noting it was not a sponsored promotion.
3. Market/Investment Angle:
- Rates Held Steady: The initial breaking news confirmed the Federal Reserve left interest rates unchanged, which initially caused a market rally, though volatility quickly followed.
- Call for Rate Cuts: The host strongly argued that there is no economic reason not to cut rates, citing inflation being at the 2% target, falling energy costs, and the need to incentivize private sector growth, wage increases, and job employment.
- Debt Refinancing Argument: A key counterpoint raised by the audience was that refinancing the massive US national debt at current high rates is a compelling reason for the Fed to cut rates soon.
4. Notable Companies/People:
- Jerome Powell (“Daddy Powell”): The central figure whose announcement dictated market movement. The host expressed strong frustration with his perceived political maneuvering and delay in cutting rates.
- Arrow Drum (ARDR): Highlighted as a top performer due to adoption news.
- Kita (KTA): Promoted as a cutting-edge, fast blockchain project worth watching for accumulation.
- Byron: A community member who made a significant contribution by gifting 10 “Discover Crypto Memberships,” leading to a surge of positive sentiment (“W’s”) in the chat.
5. Regulatory/Policy Discussion:
- Inflation Mismanagement: The host heavily criticized Powell and Janet Yellen for initially labeling inflation as “transitory,” suggesting the Fed is now “too late” in its policy response.
- Federal Reserve Critique: There was a deep critique of the Federal Reserve’s existence, though the host conceded it contributed to the US becoming a superpower. The discussion touched on the difficulty of politicians managing the national debt effectively.
- FedWatch Data: The host reviewed the CME FedWatch Tool, noting low expectations (16% chance) for a rate cut in the immediate next meeting (July 30th).
6. Future Implications: The conversation suggests a deep skepticism regarding the Fed’s immediate future actions, predicting Powell will remain cautious (“monitoring the situation”). The host remains hopeful for an “alt season,” which they believe is being artificially suppressed by high interest rates. The focus shifts to specific tech projects like Kita as potential outperformers when market conditions eventually shift favorably.
7. Target Audience: This episode is most valuable for active cryptocurrency traders and investors who need real-time analysis of macroeconomic events (FOMC) and their direct impact on crypto asset prices, as well as community members interested in the host’s trading strategies and altcoin picks.
🏢 Companies Mentioned
đź’¬ Key Insights
"Every forecaster you can name who you know who is a professional... is forecasting a, you know, pretty significant. Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs because someone has to pay for the tariffs, and it will be someone in that chain... ultimately the cost of the tariff has to be paid."
"We've learned that tariffs are going to be substantially larger than forecasters generally thought... So you now you see you saw 2.5% forecast in December. You saw 2.8% in March, and you see 3.1% now."
"We expect a meaningful amount of inflation to arrive in coming months. They just have the historical data as the kind of backward-looking. They don't look would lead you to a neutral stance, but we have to look at that and because the economy is still solid, we can take the time to actually see what's going to happen."
"The participant projections at the appropriate level federal funds rate will be 3.9% at the end of this year, the same as projected in March."
"Our obligation is to keep longer-term inflation expectations well-anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem."
"There's projects like Kita that have been doing more research into, uh, founded by the X CEO or founder, I believe, of X CEO of Google. Uh, Kita is the fastest blockchain on the planet right now and shout out to the chat that found this and introduced me to it in, um, in the Discord."