đ¨ Fed Hikes Rates â But Is the Worst Already Priced In?
The Federal Reserve has finally raised rates after three years, taking the target range to 3.75%â4.00%. Even more importantly, the latest dot plot points toward the possibility of one more hike this year.
But hereâs the interesting part đ
Markets had already been preparing for this move, so some of the shock may already be priced in. That helps explain why risk assets can still see short-term rebounds despite the hawkish signal.
Short term: âbad news already priced inâ could support a relief bounce.
Long term: Higher-for-longer rates and elevated inflation still create downside pressure for risk assets, including crypto.
And thereâs one big wildcard: oil and the Iran situation. If geopolitical tensions ease in the coming months and oil prices fall, inflation could coolâpotentially reducing the need for another hike.
For now, the Fedâs second hike is a possibility, not a certainty. Markets will be watching inflation, oil, and incoming economic data closely. đ
#bitcoin.â #BTCâď¸ #CryptoPatience #Cryptocurrency
The Federal Reserve has finally raised rates after three years, taking the target range to 3.75%â4.00%. Even more importantly, the latest dot plot points toward the possibility of one more hike this year.
But hereâs the interesting part đ
Markets had already been preparing for this move, so some of the shock may already be priced in. That helps explain why risk assets can still see short-term rebounds despite the hawkish signal.
Short term: âbad news already priced inâ could support a relief bounce.
Long term: Higher-for-longer rates and elevated inflation still create downside pressure for risk assets, including crypto.
And thereâs one big wildcard: oil and the Iran situation. If geopolitical tensions ease in the coming months and oil prices fall, inflation could coolâpotentially reducing the need for another hike.
For now, the Fedâs second hike is a possibility, not a certainty. Markets will be watching inflation, oil, and incoming economic data closely. đ
#bitcoin.â #BTCâď¸ #CryptoPatience #Cryptocurrency
