Hawkish Fed, stocks market rally, and crypto falling behind

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In episode 13 of Cointelegraph’s Macro Markets, Marcel Pechman explains why the cryptocurrency market has been falling behind the stock market after the Fed’s hawkish stance.

Macro Markets, hosted by crypto analyst Marcel Pechman, airs every Friday on the Cointelegraph Markets & Research YouTube channel and explains complex concepts in layperson’s terms, focusing on the cause and effect of traditional financial events on day-to-day crypto activity.

Pechman states that the U.S. government signaled it is not afraid of unemployment and weaker corporate earnings as long as inflation is controlled. Therefore, the most probable reasons for the U.S. stock market rally were the risk of the Fed raising interest rates — which did not materialize — and the recent macroeconomic data, which came in at 4% inflation and 1.6% retail sales growth.

The next part of the show discusses the European Central Bank raising interest rates for the eighth successive time. For Pechman, it became clear that the ECB hasn’t been as hawkish as the U.S. Federal Reserve and is now playing catch-up on its 3.5% basic interest rate.

 

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