August core CPI came in at +0.3% MoM and markets have now priced in nearly 90% chance of a 25 bp hike this week. I personally expect the Fed to deliver that hike. Inflation is still sticky enough that they can’t afford to stay on hold but I don’t see this as the start of a long aggressive hiking cycle. More like a one-and-done or maybe two moves total to keep credibility. If the hike lands here’s how I see the reaction: BTC – short-term volatility and possible dip, but medium-term I stay bullish. Higher rates usually hurt risk assets initially yet Bitcoin has already priced in a lot of the hawkishness. Once the dust settles liquidity flows and ETF demand should support it again. Tech stocks – clearly bearish in the short run. Higher discount rates hit growth names hard. Nasdaq will feel the pressure. Gold – mixed to mildly bullish. Rate hikes are dollar-positive but any risk-off move or geopolitical noise can still push gold higher. My own plan: I’m holding my long-term BTC bag and adding on any sharp dips. No fresh long on tech until we see the reaction. Gold I keep as a small hedge. What do you guys think — one-and-done or the start of something bigger? Drop your view and share your trades. #FedRateWatch
Will the Federal Reserve raise rates as expected this week? Wall Street is debating: will it end the U.S. stock bull market?
After an unexpectedly strong U.S. CPI report came out last Friday, traders generally expect the Federal Reserve to begin raising rates at this week’s policy meeting—marking the first rate hike in more than three years.
Historically, previous rounds of rate hikes have offered a reference point for today’s market. Based on past experience (though history of course can’t guarantee the future), U.S. stocks may first weaken, then rebound.
Among the six tightening cycles since 1994, during the first four months after the rate-hike cycle began, the S&P 500’s average return was negative.
This suggests that once the “rate-hike shoe” drops, U.S. stocks may look lackluster through the beginning of next year.
As of the close last Friday, the benchmark U.S. equity index, the S&P 500, is up nearly 12% year to date. Strong corporate earnings and a fairly resilient economy have provided solid support for bulls in the stock market.
If you extend the time horizon, the S&P 500’s performance tends to improve gradually: in the 12 months after the start of a rate-hiking cycle, the index’s average return is close to 7%, with a median return of about 11%. (Using median-based statistics helps remove distortions from extreme outliers—for example, the index surged more than 40% after hikes began in March 1997.)
If the Federal Reserve implements a rate hike this Wednesday, it will be the first hike since July 2023—when the Fed raised rates to a range of 5.25% to 5.50%.
Currently, the federal funds rate in the U.S. is at 3.50% to 3.75%. According to the CME Group’s FedWatch tool, futures traders currently assign an 86% probability to a 25-basis-point hike this week.
One positive factor for the market is that mega-scale cloud service providers are still driving growth in excess returns through large-scale AI spending. The S&P 500 component stocks’ forecast for earnings growth in 2027 is expected to reach double digits. If the outlook for AI spending remains unchanged, it may be enough to offset any cooling in optimistic sentiment caused by the rate hikes.
Another bright spot for equities is that although inflation remains sticky, it appears to be slowing. The inflation rate has fallen from a May peak of 4.2%. This should allow the Federal Reserve to take a more gradual approach, and the data shows that the pace of rate hikes is crucial for stock performance—slower pacing gives investors more time to absorb policy changes! $BZ
Today the market is down, and the group chats are once again full of wailing and despair.
I want to say something that may not sound very pleasant: the people who keep shouting “It’s over,” “It’s a bear market,” every time there’s a big drop are destined to never make big money.
Why? Because all they see is short-term price fluctuations, not long-term logic. In the crypto world over the past ten-plus years—from BTC costing just a few dollars to now costing tens of thousands of dollars—how many times have there been major crashes in between? Over 90% drawdowns have happened multiple times, and every time someone says, “Bitcoin is dead.” What actually happens? People die off, not Bitcoin.
Of course, I’m not saying you can mindlessly buy the bottom right now. There really is uncertainty around regulation, and in the short term it could still fall, and worse news could still come out. No one knows where the bottom is, and I don’t either.
But I know one thing: every major crisis is a good opportunity to pick up cheap chips. When the FTX collapse happened in 2022, when we hit 312 in 2020, and during the bleakest part of the 2018 bear market—looking back now, it’s all golden pits. Back then, most people who were right in the middle of it were panic-selling and cutting losses; not many had the nerve to buy.
So at a time like this, don’t just be afraid.
If you have cash, start building your position in batches;
If you have coins, don’t cut blindly. As long as what you hold is major coins like BTC and ETH, you won’t “die.”
The market always hits the bottom in fear, rises in hesitation, and ends in frenzy.
In this stage, is it more like “panic” or “hesitation”?
Think about it yourself.
At 9 p.m. I’ll chat in the live room about how to position yourself during a falling market. No order-chasing—just sharing my thoughts. If you want to join, go to my profile page.
💥 With grit and determination, we reach the mountains and seas; with hard work, we earn glory. May the road ahead be smooth, and may all things be possible to look forward to.
Every immortal has their own mountain, and every bodhisattva has their own temple. You must have your own place of practice. This is a remedy of great value. Good morning 🌻
In the early hours of September 16, Beijing time, the U.S. Senate delivered its result on a procedural vote regarding the “Clarity Act” for the digital assets market. The bill failed to clear the 60-vote threshold, so it cannot move on to the next stage of formal consideration. The highly anticipated crypto regulatory legislation—one that the industry had pinned great hopes on—has, for now, been stalled.
One point needs to be clarified: this time, the bill was not directly rejected. Instead, it failed at the procedural step required to advance. The bill remains on the congressional calendar, and in theory there is still a possibility of being brought back for reconsideration. However, given the pace of congressional proceedings, the likelihood of it being enacted again within 2026 has become extremely low.
What problem the bill was originally meant to address
The bill is widely seen as a landmark piece of legislation in the crypto industry. Its core goal is to clarify regulatory authority and responsibilities: to define the jurisdictional boundaries between the SEC and the CFTC; to lay out a federal-level compliance path for crypto exchanges and stablecoin projects; and to put an end to the long-standing situation where “regulation relies on enforcement actions and the rules are unclear.”
For a long time, the biggest pain point for the crypto industry has been vague and ambiguous rules. Institutional capital wants to enter the market but lacks a unified legal benchmark. Ordinary investors also face the risk of platform blowups and having no clear path to seek redress. Industry stakeholders from multiple sides have spent significant effort lobbying and negotiating, hoping that this bill could end the regulatory gray area.
Why it ultimately failed to clear the threshold
The bill was stalled due to irreconcilable disagreements between the two parties.
On the Democratic side, the view is that the existing version does not provide sufficient strength on consumer protection, anti-money laundering, and risk controls. They worry that the bill would give the industry overly relaxed space, sowing hidden financial risk vulnerabilities. Some Republican lawmakers, meanwhile, are concerned that expanding regulatory authority would raise compliance costs for businesses and dampen the innovative momentum of digital asset development.
Even though the legislative team revised the provisions multiple times and added patches such as interest-constraint measures for public officials, the core conflict still could not be bridged. In the end, the vote margin was clearly insufficient, and it failed to meet the Senate’s hard requirements to advance the bill.
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With market waves surging and rolling, we meet challenges head-on with the resilience of the butterfly. This time, the principal’s personal presence on the Binance livestream is not only a solemn confirmation of phased achievements, but also the loud call of a new journey.
Witness the rise of Butterfly Life, overcoming the constraints of the past, heading toward the era of glory that belongs to you and me— with all our effort, we will set off to brilliance together. 🦋🦋🦋$BTC 🦋🦋$TRUMP 🦋$SOL #蝴蝶人生🦋 #Flap🦋 🦋 #meme #比特币下跌4% #美联储加息是否已成定局
A setback is not the end. The road may be winding, but the light of hope is still ahead. Don’t let today’s uncertainty wear down your confidence. Settle your mind, hold steady to your resolve, and wait for the right moment—our opportunity will surely arrive as promised 🌱
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