📊 Raising interest rates doesn’t necessarily mean the downtrend will continue
Markets are preparing for the Federal Reserve decision, especially after August’s report showed that core inflation rose 0.3% month-over-month, while headline CPI increased 0.4%, bringing annual inflation to 3.4%.
If the Fed raises rates by 25 basis points, we could see short-term pressure on Bitcoin and technology stocks due to higher yields and a stronger dollar. But I don’t think we should look at the decision in isolation from the bigger picture.
If a rate hike is a single step aimed at controlling inflation, and then the upcoming data starts to show slowing prices, market expectations could quickly shift to a more flexible scenario. In this case, assets affected by liquidity expectations—such as Bitcoin and equities—could benefit.
As for gold, it may remain supported if uncertainty about inflation and monetary policy persists.
So I’m cautiously optimistic about gold and Bitcoin over the medium term, but I’d rather wait for the market’s reaction after the decision than jump in directly amid the volatility.
The real question isn’t only: Will the Fed raise rates? It’s also: What will it say about the next step?
#FedRateWatch #Bitcoin #Gold #FOMC
Markets are preparing for the Federal Reserve decision, especially after August’s report showed that core inflation rose 0.3% month-over-month, while headline CPI increased 0.4%, bringing annual inflation to 3.4%.
If the Fed raises rates by 25 basis points, we could see short-term pressure on Bitcoin and technology stocks due to higher yields and a stronger dollar. But I don’t think we should look at the decision in isolation from the bigger picture.
If a rate hike is a single step aimed at controlling inflation, and then the upcoming data starts to show slowing prices, market expectations could quickly shift to a more flexible scenario. In this case, assets affected by liquidity expectations—such as Bitcoin and equities—could benefit.
As for gold, it may remain supported if uncertainty about inflation and monetary policy persists.
So I’m cautiously optimistic about gold and Bitcoin over the medium term, but I’d rather wait for the market’s reaction after the decision than jump in directly amid the volatility.
The real question isn’t only: Will the Fed raise rates? It’s also: What will it say about the next step?
#FedRateWatch #Bitcoin #Gold #FOMC