**Warsh puts inflation at the center of the Fed board**
Kevin Warsh, one of the names that have been floated to lead the Fed, made it clear that inflation remains the number one priority. In a context where the market was expecting more aggressive rate-cut signals, this approach tightens the tone and puts pressure on risk assets, including crypto.
Why does it matter for crypto? Because Bitcoin and the rest of the market move with the pace of liquidity. If the Fed keeps rates high for longer to fight inflation, the opportunity cost of holding crypto rises and institutional demand may cool down.
Last week, Bitcoin was rejected at 81K just above the 50-week average, and today it trades at 77,896 with a negative daily bias. The $6.4B options expiry coincided with that rejection, marking a turning point. If the macro environment keeps tightening, the pullback could deepen.
The key now is whether price holds support at 76,853 or breaks it and seeks liquidity further down at 74,457. Meanwhile, Fear & Greed fell from 73 to 68, reflecting a cooling of optimism.
Do you think the Fed will change its tone, or will we keep high rates for longer? Share your take in the comments.
#WarshSaysInflationIsFedTopFocus
Kevin Warsh, one of the names that have been floated to lead the Fed, made it clear that inflation remains the number one priority. In a context where the market was expecting more aggressive rate-cut signals, this approach tightens the tone and puts pressure on risk assets, including crypto.
Why does it matter for crypto? Because Bitcoin and the rest of the market move with the pace of liquidity. If the Fed keeps rates high for longer to fight inflation, the opportunity cost of holding crypto rises and institutional demand may cool down.
Last week, Bitcoin was rejected at 81K just above the 50-week average, and today it trades at 77,896 with a negative daily bias. The $6.4B options expiry coincided with that rejection, marking a turning point. If the macro environment keeps tightening, the pullback could deepen.
The key now is whether price holds support at 76,853 or breaks it and seeks liquidity further down at 74,457. Meanwhile, Fear & Greed fell from 73 to 68, reflecting a cooling of optimism.
Do you think the Fed will change its tone, or will we keep high rates for longer? Share your take in the comments.
#WarshSaysInflationIsFedTopFocus