#FedRateWatch Markets enter one of the most sensitive moments of the week as the Federal Reserve meeting and the interest-rate decision approach
Recent U.S. inflation data gave markets an important signal, as CPI rose in August by 0.4% month-on-month, while Core CPI rose by 0.3% and annual inflation reached 3.4%. This means that price pressures are still above the Federal target of 2% �
Reuters
Therefore, market expectations increased for a 25-basis-point rate hike, and the most important question is no longer only whether the Fed will raise rates or not, but what it will say about the next steps
For BTC, stocks, and gold, higher rates may mean tighter liquidity and higher bond yields, and thus we may see strong volatility in high-risk assets
But if the rate hike is already priced in the market, the actual reaction may be tied to the Fed’s tone and its expectations for the upcoming decisions
I will monitor BTC, the dollar, and bond yields before making any trading decision, and I won’t chase the first move after the news
Do you expect the Fed’s decision to be the start of a longer tightening cycle, or just a single hike?
#FedRateWatch #BTC #Bitcoin #CPI
Recent U.S. inflation data gave markets an important signal, as CPI rose in August by 0.4% month-on-month, while Core CPI rose by 0.3% and annual inflation reached 3.4%. This means that price pressures are still above the Federal target of 2% �
Reuters
Therefore, market expectations increased for a 25-basis-point rate hike, and the most important question is no longer only whether the Fed will raise rates or not, but what it will say about the next steps
For BTC, stocks, and gold, higher rates may mean tighter liquidity and higher bond yields, and thus we may see strong volatility in high-risk assets
But if the rate hike is already priced in the market, the actual reaction may be tied to the Fed’s tone and its expectations for the upcoming decisions
I will monitor BTC, the dollar, and bond yields before making any trading decision, and I won’t chase the first move after the news
Do you expect the Fed’s decision to be the start of a longer tightening cycle, or just a single hike?
#FedRateWatch #BTC #Bitcoin #CPI