#FedRateWatch If a 0.25% cut happens and the Federal Reserve hints at another cut later, I consider that one of the best scenarios for cryptocurrencies—we may see an upward wave, not just a short-lived spike.
As for a 0.25% cut with a hawkish statement like “This cut is exceptional and there are no cuts coming soon,” currencies may rise first and then reverse part of the gains.
Important: since this cut is almost unpriced in the market right now, if it occurs it will be a much bigger surprise than a cut the market had expected. Therefore, I expect extremely violent volatility in the first minutes/hours after the decision.
As for a 0.25% cut with a hawkish statement like “This cut is exceptional and there are no cuts coming soon,” currencies may rise first and then reverse part of the gains.
Important: since this cut is almost unpriced in the market right now, if it occurs it will be a much bigger surprise than a cut the market had expected. Therefore, I expect extremely violent volatility in the first minutes/hours after the decision.