If you’re reading this then you probably have recognized by now that cryptoassets have value. The question needs to evolve into what value should each specific coin have?
The ultimate answer is “whatever someone is willing to pay for it.” However, in traditional markets, we have hundreds of years of analytical methods to determine value, something which has yet to emerge in this nascent industry.
To that end, I’d like to get the discussion started by sharing this simple video with you, where I discuss some of the basic concepts for evaluating cryptos.
Today’s Highlights
Traditional Markets
As expected, the Fed meeting last night was pretty vanilla. The statement released by the FOMC was very similar to the statement they handed down in August. There were only very minor changes to the text.
An email I received this morning from Bloomberg’s John Authers had an interesting take on this and pointed out that it’s not what the Fed said but what they didn’t say that’s interesting.
Here’s a list of omissions…
Of course, John’s point isn’t to criticize the Fed or not pointing out the obvious. His point is that by not mentioning these things the Fed is signalling that they’re not about to be intimidated by the markets at this time.
That’s not to say they won’t step in later, but at least for now, they’re likely to continue their pace of rate rises and monetary tightening.
How did the Markets React?
As one would expect, the prospect of the Fed continuing to raise their rates had an immediate effect on the US Dollar.
The surge is apparent even when we zoom out to the more long-term charts.
The stocks and bonds also took the Fed’s statement as a sign of tightening to come and we could notice modest declines in the major indices, especially in the Nasdaq which has been showing signs of weakness before investors were sidetracked by the mid-term.
