Inflation wall of worry send stocks lower, bitcoin selloff continues

Fed, China weigh on equity markets

US stocks declined as the bond market selloff continued as investors fret over aggressive monetary tightening by the Fed and as China continues to struggle with their latest Covid outbreak.  Wall Street is worried that inflation will eventually destroy all the growth potential that was supposed to happen this year.  Inflation may be peaking soon, but the war in Ukraine and now China’s growing lockdowns will continue to drive supply chain issues. Weakness in consumer spending is emerging and that is why many stock traders are entering de-risking mode. This is a tough environment to want to hold onto risk and that might remain the case until investors believe the Fed may not be as aggressive with tightening policy.  The Fed has locked itself into delivering a couple massive rate hikes and the earliest they could flip-flop and ease up on tightening as growth concerns become a priority is the middle of the summer.


Bitcoin is under pressure as the bond market selloff resumed, prompting a widespread selling of risky assets. The Bitcoin 2022 conference was more of a party than a game-changing event that will spur the next round of massive investment into cryptos.  Bitcoin is struggling here as rising rates are leading to a de-risking moment for many traders.  With no momentum from the Bitcoin 2022 conference, the focus shifts to inflation and expectations are for a very hot report that will probably be the peak.

Nothing has changed for bitcoin’s fundamentals in the past week, but momentum selling could make things interesting if the USD 40,000 level breaks.  Bitcoin should see strong support ahead of the USD 38,000 level.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.