Bitcoin price expectation

Jerome Powell, the head of the US Federal Reserve, has told Congress that interest rates will surely have to rise more than anticipated due to the latest inflation data. This is in strong contradiction with the assumptions made by the market to justify the latest increases. The most recent bullish run was based precisely on the idea that the fight against inflation was practically won and that, sooner rather than later, the Federal Reserve would have to make a turn in monetary matters. Which, in turn, implies that risky assets like Bitcoin will finally get their long-awaited recovery. Hello, bullish season! Investors were swept by optimism and the best possible scenario was presented as the most likely scenario. Powell's comments came to contradict that expectation.

Every investor buys with an expectation. And that expectation is built on an interpretation of the situation. What is relevant here is the difference between today and tomorrow. Will we be better? Or will we be worse? Will there be more demand? Or will there be less demand?

Inflation: Why isn't it so easy to reduce it further?
What narrative fueled the latest surge of optimism? This is a narrative that assumed that inflation was falling and that everything was going smoothly. Because of this success, surely the Federal Reserve would not have to raise interest rates above 5%. At this level, inflation would fall, but without causing further damage to the economy. Which means that we are at a good time to buy financial assets, because the worst is over and the best is yet to come. It's time to buy.