Billionaire Chamath Palihapitiya says the markets are likely to witness more bursts to the upside following the recent comments of Fed Chairman Jerome Powell.
In a new All-In Podcast episode, the venture capitalist says that the statements made by Chairman Powell during the Federal Open Market Committee meeting last week indicated that the Federal Reserve is beginning to ease the pace of future rate hikes.

“In December, [Powell] was extremely hawkish and he was basically like, ‘Listen, we’re going to keep rates higher than you like and longer than you want. And he was pretty clear and the markets reacted. 
And then not 35 [or] 40 days later, he essentially said we have two 25 basis point hikes left to go, and he’s going to try to stick the landing essentially. 
Even though the rest of the language in his entire speech and the press conference, if you read it in the absence of the his body language – so if you just read the transcript – would seem very hawkish as well. But the reality was he basically capitulated. And then the market essentially said, ‘Okay, we’re at the end of this thing.’
We’ve talked about this before but markets tend to bottom six to nine months before it’s clear that you could have done this. And so, we’re a little bit off to the races in the short term.” 
According to Palihapitiya, the markets could mirror its late 2018 to early 2019 price action, a period when the markets, including Bitcoin ( BTC ) and crypto, skyrocketed.
“At the end of 2018 – October, November, December – the markets just fell, and part of it was Powell’s going to raise rates, inflation’s getting out of control, etc., and then we got all this data that said China may be entering a real period of malaise and Powell capitulated, again trying to stick the landing. Long story short, he didn’t, that was a headfake and the markets just ripped higher…
I think we’re about to replay a little bit of that. At least in the next 30 to 90 days, the pain trade is to go up.”

I
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter , Facebook and Telegram

Surf The Daily Hodl Mix



Check Latest News Headlines

 


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Jaswe
The post Billionaire Chamath Palihapitiya Says Markets Are Off to the Races As Fed Capitulates – Here’s His Outlook appeared first on The Daily Hodl .