$BTC Don’t get too worked up. Every country is raising interest rates. South Korea may raise further, and the U.S. could also raise again by year-end. This rally could be the last rebound after global central banks tighten policy—big sell-off isn’t far off!

Deutsche Bank warned that the eventual interest rate level could exceed expectations. Global central banks have entered a synchronized tightening phase. According to Deutsche Bank strategist Henry Allen, over the past two weeks the Fed, the ECB, and the Bank of Japan have all raised rates, marking the start of a global, synchronized monetary tightening cycle. However, the market may be underestimating how high rates will ultimately go and how long high rates will last. Deutsche Bank listed four factors: Brent crude is around $100 per barrel, suggesting commodity price pressure remains; after being hit earlier, central banks have become more sensitive to inflation; the S&P 500 is near its historical high and credit spreads have tightened, indicating that financial conditions are still relatively loose; and a historical precedent— in 2022, investors initially expected the Fed to raise rates by 200 basis points, but the actual increase exceeded 400 basis points. The bank noted that a more aggressive rate-hiking cycle does not necessarily mean a stock-market crash. As long as economic growth stays strong, corporate earnings can offset valuation pressure.