🚨 #FedRateWatch | Are we seeing the start of a new cycle of rate hikes?
The Federal Reserve has just raised interest rates by 25 basis points, bringing the US benchmark rate to 3.75%-4.00%.
But the hike itself wasn’t the only thing the market was watching.
📊 Inflation is still the problem:
• August CPI: +0.4% month-over-month
• Annual CPI: 3.4%
• Core CPI: +0.3% month-over-month
The core figure is especially relevant because it excludes food and energy and has again shown persistent pressure on prices.
🏦 What did the Fed say?
The new projections show that 16 of 18 members expect at least one additional hike before the end of 2026. That means the market now has to assess whether today’s decision was a one-off increase or the beginning of a more restrictive period.
₿ And what about Bitcoin?
Bitcoin and cryptocurrencies are sensitive to liquidity conditions and the cost of money. A higher-rate environment can put pressure on risk assets, while any sign of a future pause could quickly shift market expectations.
In fact, today wasn’t just crypto that reacted: after the Fed’s decision, US stocks pulled back and bond yields rose.
💡 Now the important question is not only “Did the Fed raise rates?”
The real question is:
How many more hikes are coming, and how long will rates stay elevated?
That could be one of the most important macro factors for BTC, tech stocks, gold, and other assets over the coming months.
Do you think this hike will mark the start of a new cycle of monetary tightening, or that the Fed will pause after an additional hike? 👇
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