Federal Reserve decision result: rate hike of 25 basis points to 3.75%-4.00%, approved unanimously 12-0, the first rate hike since 2023. Compared with the hike itself, what matters more is how hawkish the dot plot is—out of 18 officials, 16 are expected to raise rates again within the year, and 4 even expect two more rate hikes, far exceeding the market’s earlier optimistic expectations.
As for price action, $BTC is up 0.41% to $76,130, $ETH is up 0.81% to $2,418, which is a “technical rebound after bad news,” not a trend reversal. The gold token $PAXG is basically flat ($4,296), with the previously obvious risk-premium premium having given back.
From a macro liquidity perspective, such a hawkish forward guidance implies that the tightening cycle may be longer and steeper than the market expects. Investors are advised not to mistake this rebound as a bullish signal. In the coming weeks, officials’ remarks and incoming data will determine whether risk assets can truly stabilize. #FedRateWatch
As for price action, $BTC is up 0.41% to $76,130, $ETH is up 0.81% to $2,418, which is a “technical rebound after bad news,” not a trend reversal. The gold token $PAXG is basically flat ($4,296), with the previously obvious risk-premium premium having given back.
From a macro liquidity perspective, such a hawkish forward guidance implies that the tightening cycle may be longer and steeper than the market expects. Investors are advised not to mistake this rebound as a bullish signal. In the coming weeks, officials’ remarks and incoming data will determine whether risk assets can truly stabilize. #FedRateWatch
