Over the past year, the Federal Reserve has used interest rates to combat inflation in the United States – a move that has had a significant impact on the crypto market. However, prominent mutual fund manager Jeffrey Gundlach says a new metric is needed for determining interest rates.
Ignore the Fed
Gundlach, a prominent investor who runs DoubleLine Capital LP, spoke on a webcast earlier this week about the current market situation and how policymakers can address inflation.
According to him, investors would be better served by focusing on the bond market instead of the Federal Reserve for predicting interest rates.
Gleaning on his decades-long experience in the investment space, Gundlach explained that the Federal Reserve ultimately reacts to sentiment from the broader market itself. So, investors looking to get on the fast track would do well to listen to the former instead of the latter.
So far, there has been significant optimism that the market could rebound following possible reductions in the interest rate. According to a few reports, Fed officials have signaled the possibility of raising their policy target above 5% and keeping it there. However, with swaps currently pricing at the peak of less than 5%, the market doesn’t appear to be in line with the Fed’s sentiment.
Gundlach also quickly pointed out that treasury yields have dropped in the wake of recent events. As age gains slow and the services sector contracts, treasury yields across the curve have dropped below the current Fed rate.
Finally, he added that the inverted Treasury yield curves, which have successfully predicted economic slumps in the past. As he explained, the yield curves have always led to recessions in relatively short order – indicating a significant upside in many bond strategies.
Markets Await CPI Data
Gundlach may or may not be right, but it is undeniable that the Federal Reserve still controls the market – especially in the short term. So far, the Fed’s early signals are positive for crypto-assets.
Bitcoin has remained above the $16,700 mark for close to a week now, with the leading cryptocurrency even tapping the $17,500 mark briefly on Tuesday – marking its highest point since December 16.
Gains could also be seen in the gold market, with alternative assets jumping while U.S. stocks continue waiting for the Fed’s indications. Chairman Jerome Powell was a guest at the International Symposium on Central Bank Independence at Sweden’s Central Bank headquarters in Stockholm earlier this week.
However, his speech largely avoided the topic of inflation as he smartly chose not to rattle the markets.
With Powell still not giving any indication, crypto prices have continued to pump.
Nonetheless, Michaël van de Poppe, founder, and CEO of trading firm Eight has cautioned investors to be cautiously optimistic even amid the current rally. In a tweet earlier this week, the trader forecasted a possible reclaim of the $17,500 mark, although he also pointed out that a dip to $16,900 for Bitcoin isn’t out of the question.
#Bitcoin rejecting at crucial area as Powell's speech is approaching yesterday + simply crucial resistance zone.
Probably sweep towards $17.1K before another bounce towards $17.5K for bearish divergence or we long at $16.9K.
— Michaël van de Poppe (@CryptoMichNL) January 9, 2023
For now, the latest Consumer Price Index (CPI) data covering December 2022 is expected on January 12.
New Presales Show Significant Promise
Due to speculation about a possible market rally, investors are looking for the best position to profit. In light of this, it is prudent to consider several interesting new cryptocurrencies performing above the industry averages.
C Charge (CCHG)
The first name on the list is CCHG. The digital asset is the native token for C+ Charge – a new platform looking to deliver more value to electric vehicle owners.
C+Charge provides a simple and effective way for EV owners to charge their vehicles. It offers its CCHG token as a quick and reliable payment system while also giving users a mobile app that they can use to process payments easily and seamlessly. With the C+Charge mobile app, users will also be able to locate EV charging stations close to them and conduct diagnoses on their vehicles.
⚡The EV quantity in the US increased by 87.5% in the first half of 2022, while the growth in charging points is 31%
At C+Charge, we aim to accelerate the station's growth with a unique payment solution
Join our presale and make an impact
— C+Charge (@C_Charge_Token) January 11, 2023
CCHG is available on presale, and it has thus far raised an impressive $246,000.
Fight Out (FGHT)
For fans of the fitness space, Fight Out is here to revolutionize how we work out completely. The platform fully embraces the move-to-earn (M2E) model, allowing users to engage in different exercises and make money directly from their activities.
With Fight Out, users can set the workouts they’d like to engage in and even state their fitness objectives. From there, the platform sets tailored workouts that align with the objectives and offers rewards to users based on their ability to keep up. Fight Out is also creating a metaverse platform where users will be able to choose their specific avatars and compete in tournaments and other activities in order to earn more.
Web2 meets Web3 with #FightOut! ⚡️
Join our #MoveToEarn fitness community and earn rewards for your workouts, then take the next step in the Fight Out metaverse!
— Fight Out (@FightOut_) January 11, 2023
Fight Out operates using the FGHT native token. The digital asset can be used to pay for subscriptions and staked for more units and discounts on different services. FGHT is available on presale, with a capital raise already eclipsed $2.84 million.
Meta Masters Guild (MEMAG)
The Meta Masters Guild is a new blockchain gaming collective that describes itself as the world’s first mobile-focused Web3 gaming guild.
The Guild’s objective is to create an ecosystem of blockchain games, each of which will operate individually. Players can enjoy access to these games and contribute to them, with the MEMAG token being their reward system.
Already, the MMG ecosystem has three participating games – Raid NFT, Meta Masters World, and Meta Kart Racers. All of these games use the MEMAG token as their native coin, and players can contribute to each of them for an opportunity to earn MEMAG in return.
MEMAG is available on presale, with a capital raise of over $30,000 at press time. Each token sells for just 0.0007 USDT, with the value expected to rise as more presale stages are passed.
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Fight Out - Next 100x Move to Earn Crypto
- Backed by LBank Labs, Transak
- Earn Rewards for Working Out
- Level Up and Compete in the Metaverse
- Presale Live Now - $4M+ Raised
- Real-World Community, Gym Chain