Alfonso Peccatiello (a cryptocurrency influencer) expressed his opinions on the current rally. The current rally in crypto isn’t a signal for investors to get too excited. After the rise in Bitcoin and Ethereum over the past 24 hours, this was made clear.
The cryptocurrency market monitor showed an increase in Bitcoin prices of over 9% during the last 24 hours. BTC is currently trading at over $23,000
Ethereum, which is the second most popular digital currency has seen a steep rise in price. The price of Ethereum rose by more than 13% in the last 24 hours. The token currently trades for $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
Alfonso Peccatiello is a well-known crypto expert who also wrote The Macro Compass. He shared his views on the crypto rally. According to PeccatielloThe recent surge in digital currencies should not cause investors to get excited. This was his statement, and he supported it with an explanation.
Related Reading: Bitcoin Makes Surprise Climb As Fed Discloses 0.75 Point Rate Bump
Peccatiello initially admitted that Jerome Powell, Fed chair, caused the price rise of cryptocurrency. His speech must be guided. According to him, if his speech is not supported by a second party it could be dangerous for the cryptocurrency market.
He also revealed his portfolio and stated that he had little interest in risky investments. Digital currencies is one of these risky assets.
Cryptocurrency Rally Trigger
Drawing from Peccatiello’s speech, the increase in the prices of these digital tokens commenced after Powell’s statement. Powell also stated that there was a link between inflation and neutral rates of interest.
Powell also cited that the Fed’s operations will base more on data. These are the results of recent increases of 75 basis points.
Peccatiello says that the Federal Reserve will be an abominable zone if they increase their interest rates over time.
Powell seems more cautious now than the Fed believes they have reached neutral rates. Why?
The Fed would always raise its restriction policy above the Fed’s, and it eventually broke something.
Each and every time. pic.twitter.com/OkQ51xzipB
— Alf (@MacroAlf) July 28, 2022
Powell then made another statement. This is a cause for serious concern. He stated that there was an alarming increase which could have been the trigger for the FOMC meeting scheduled for September.
Similar Reading: Why Cardano (ADA), May Breakout in a Bull Run to $1| Why Cardano (ADA) May Breakout In A Bull Run To $1
The fate of digital currency and its yields was his final comment. Peccatiello stated that the Fed must tighten its belt. Peccatiello indicated that the Fed must take aggressive tightening to avoid a decline in actual yields.
Additionally, low yields can lead to lower performance in crypto markets and other risk-driven investments.
Featured image by Pexels. Chart from TradingView.com