by Tiffany Wang, WOO X Analyst
Inflation appears to be more persistent than initially anticipated, prompting the bond market to react accordingly. Analysis of the fixed-income option market reveals a consensus expectation that the Federal Reserve will implement only two rate cuts in 2024. Given the previous Fed Dot Plot projected three cuts, there is speculation that Powell may revise the Dot Plot in a hawkish direction next week. Persistent discussions regarding a potential hawkish adjustment in the Dot Plot are contributing to upward pressure on bond yields. Should bond market volatility resurge, the stock market is likely to be impacted as well.
From WOO X Research
BTC plunged from its high of $73,777 to a low of $64,533, reflecting a decrease of 12.5%. Currently, there are two key points to observe trend changes. One lies around $63,500, which operates as support for various key indicators. Since BTC broke through $43,000 in early February, it has been steadily trading above MA25. If it falls below, it could continue to slide towards the next major support level at $59,000. This price range is a concentrated stock area, also serving as an excellent bottom-grabbing interval. If BTC continues to oscillate and break through $69,500 over time, the probability of this adjustment marking a new low will drastically reduce. This means that the 12.5% fall has achieved its purpose of cleansing the market after reaching new highs. Whether it drops to $59,000 or breaks above $69,500, the nature of this fall is still a correction, and BTC is likely to reach new highs in the future.
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