This is the Catch 22 condition for Fed, with the specific geopolitical uncertainty. It is simply posing risk to the stability of Bitcoin, financial market. The oil which move more than $100 possibly to boost inflation.
Putin, The Federal Reserve Chairman had announced the cancellation of the hike of March rate as well as extension to QE. Joel Heyman, actor and producer had tweeted on Thursday subsequent to Putin’s war Russian President Vladimir on the Ukraine sent the bitcoin to the 1 month lows. It is below $35,000 along with S&P 500 futures which is down by almost 730 points.
Sarcastic tweet on Bitcoin
Heyman’s this is somewhat quite much sarcastic tweet which is calling Putin as a chairman of U.S. Federal Reserve that simply mirrors with recent sentiments of crypto market. It is where the traders are planning for geopolitical indecision and for the instability in asset market. It would also force U.S. central bank to get headed to abandon any such kind of the plans for simply unwinding the liquidity-boosting along with the stimulus measures. This may also bode well for the bitcoin as the crypto currency also has seen a drop of almost 40% in last three months. It mainly on the fears of Fed rate hike.
The experts do not predict U-turn by Fed. “This is really hard to simply imagine the Fed absolutely walking through their plans for the hike in the month of March. There is absolutely no doubt that the inflationary pressures would even arise from such kind of the surge in the commodity prices. Ukraine and Russia also stay to be the biggest exporters of different precious agriculture and metals.
Catch 22 Situation
Indeed, this is now turning as the Catch 22 situation for the geopolitical doubt. It posing the threat to the stability of financial market and economy.
