đš FED DECISION COULD SHAKE THE MARKETS
The market is almost convinced that a 25bp rate hike is coming. But I think the bigger trade starts after the decision.
August core CPI rose 0.3% MoM, keeping inflation pressure on the Fed. If the hike happens, BTC and tech stocks could initially face selling pressure as traders react to tighter financial conditions.
But hereâs the twist đ
If Powell signals that this could be the final hike before a pause, the reaction could quickly reverse. BTC and tech stocks may regain momentum as markets start pricing in a less aggressive Fed path.
Gold is also interesting here. A hawkish Fed could pressure gold through higher real yields, while signs of slower growth or future easing could support it.
đ My focus: BTC price reaction + US yields + Powellâs guidance.
The rate decision is the headline. The forward guidance is the real signal.
â ïž Volatility can be extreme around FOMC.. Manage risk and avoid overleveraging.
25bp hike = priced in.
What comes next = the real game.
#FedRateWatch
The market is almost convinced that a 25bp rate hike is coming. But I think the bigger trade starts after the decision.
August core CPI rose 0.3% MoM, keeping inflation pressure on the Fed. If the hike happens, BTC and tech stocks could initially face selling pressure as traders react to tighter financial conditions.
But hereâs the twist đ
If Powell signals that this could be the final hike before a pause, the reaction could quickly reverse. BTC and tech stocks may regain momentum as markets start pricing in a less aggressive Fed path.
Gold is also interesting here. A hawkish Fed could pressure gold through higher real yields, while signs of slower growth or future easing could support it.
đ My focus: BTC price reaction + US yields + Powellâs guidance.
The rate decision is the headline. The forward guidance is the real signal.
â ïž Volatility can be extreme around FOMC.. Manage risk and avoid overleveraging.
25bp hike = priced in.
What comes next = the real game.
#FedRateWatch
