US Fed stays dovish as Bank of Japan lifts rates for first time in 17 years

by Tiffany Wang, WOO X Analyst

The US FOMC displayed a dovish stance in its recent meeting. While the SEP raised the GDP growth rate and core PCE projection for 2024, the FOMC kept the 2024 dots unchanged. This suggests a highly accommodative approach by the FOMC, indicating a willingness to maintain three rate cuts despite the growing strength of the economy. During the press conference, Chairman Powell remarked that the elevated CPI in January and February may be attributed to seasonal factors and expressed no significant concern about it.

In Japan, the Bank of Japan (BoJ) raised interest rates by 10 basis points for the first time in 17 years. While the BoJ has discontinued explicit yield curve control, it continues to purchase bonds as part of its longstanding quantitative easing (QE) program. Japanese investors rank among the largest capital exporters globally, with holdings exceeding $1 trillion in Treasuries and $0.5 trillion in EUR bonds. With domestic yields remaining subdued for an extended period, Japanese investors have sought opportunities abroad to achieve higher returns. Given their significant role as capital exporters, changes in domestic conditions can impact their behavior and influence global markets.

From WOO X Research: BTC breaching $70,500 could signal the end of the current adjustment

Last week, BTC exhibited volatility and currently shows a double bottom pattern on the 4-hour chart, with lows at $60,775 and $62,270. Viewed on a daily scale, the market has experienced a primary correction from $73,777 to $60,775. It seems likely to sustain above the $60,775 level. The immediate focus remains on the $66,000 short-term support and the crucial mid-term resistance at $70,500. Should a breakout materialize, it would potentially signal the end of the current short-term market adjustment.

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