FOMC September: What’s The Fed’s Next Move? #FedRateWatch
With August core CPI rising 0.3% month-over-month, the odds of a 25bp rate hike this week are hovering near 90%. In my view, the Fed is likely to deliver this hike to keep inflation in check. However, I believe this is a one-off adjustment near the terminal rate rather than the beginning of an extended hiking cycle, given broader economic cooling.
If the hike lands, here is how I expect the markets to react:
Bitcoin (BTC): Short-term bearish pressure due to tightening liquidity, which may push BTC down to key support zones—offering a solid spot re-entry point for long-term holders.
Tech Stocks: Bearish sentiment in the near term as higher borrowing costs weigh on corporate valuations.
Gold: Remains bullish to neutral, acting as a reliable safe-haven asset amidst macroeconomic uncertainty.
My Strategy:
I am avoiding high leverage during this volatility window. My plan is to use a Dollar-Cost Averaging (DCA) strategy to build spot positions on BTC near major demand zones while keeping tight stop-losses on short-term trades.
What is your trading plan for this FOMC decision?
#FedRateWatch
With August core CPI rising 0.3% month-over-month, the odds of a 25bp rate hike this week are hovering near 90%. In my view, the Fed is likely to deliver this hike to keep inflation in check. However, I believe this is a one-off adjustment near the terminal rate rather than the beginning of an extended hiking cycle, given broader economic cooling.
If the hike lands, here is how I expect the markets to react:
Bitcoin (BTC): Short-term bearish pressure due to tightening liquidity, which may push BTC down to key support zones—offering a solid spot re-entry point for long-term holders.
Tech Stocks: Bearish sentiment in the near term as higher borrowing costs weigh on corporate valuations.
Gold: Remains bullish to neutral, acting as a reliable safe-haven asset amidst macroeconomic uncertainty.
My Strategy:
I am avoiding high leverage during this volatility window. My plan is to use a Dollar-Cost Averaging (DCA) strategy to build spot positions on BTC near major demand zones while keeping tight stop-losses on short-term trades.
What is your trading plan for this FOMC decision?
#FedRateWatch
