đ° Just said U.S. Treasury yields are soaringâcrypto markets suddenly face extra bad news
This Fed rate hike really hit hard, pushing the U.S. borrowing cost to 5.216%. In theory, the dollar should move, but they donât seem to be short of money at allâwhich suggests the world isnât really afraid of rate hikes. As a result, people in the market who like high-risk, high-reward games start to panic. Assets like Bitcoin, which donât have a printing press backing them, are naturally the first to take a hit. In short: the money hasnât left the stock market, but people are no longer willing to pile everything into the hottest tech stocks.
Why is this news important?
Fed rate hikes are old news, but this time is different. The 30-year U.S. Treasury yield at 5.216% is the highest since 1981âessentially a âhigh-risk warning cardâ to global investors. Why does that matter? Because the essence of crypto is betting that the dollar will lose value. But now the dollar doesnât seem to be afraid of losing value, so the risk in the bet increases sharply. Itâs like buying Bitcoin is betting: âThe U.S. will mess up and Iâll escape.â Now the U.S. says, âMoney is printed by me, but I print it pretty steadily,â and then your bet wobbles. Also, rate hikes directly tighten liquidity. The money that used to be borrowed to buy Bitcoin is no longer as accessible, so demand naturally falls.
Market impact
In the short term, Bitcoin and Ethereum are definitely likely to drop. At BTC $84,279.17, with a 24-hour decline of -2.39%, if the Fed keeps hiking, it could easily fall below $80,000. Looking at historical references: whenever the Fed hikes by 75 basis points or more, Bitcoin typically experiences a decent pullback. But in the long run? This Fed hike is aimed at a âsoft landing,â not creating a deflationary crashâmeaning they want to preserve the tech-stock bubble. So whether Bitcoin can hold up this round depends on whether other central banks join in the âcurrency warââfor example, if the Bank of Japan continues to overprint yen, Bitcoin could catch a breath again.
Trading approach
Bearishâat least it isnât safe until it drops below $80,000. If the Fed actually hikes beyond expectationsâfor instance, another hike of 100 basis pointsâBitcoin may have to test $77,000. If such an above-expected scenario happens, this judgment is invalid.
This article has no project sponsor involved, and the author does not hold any of the assets mentioned
$BTC $ETH #BTC #ETH
â ď¸ Not investment advice; predictions are for reference only
#USTreasuryyields,impactingBitcoinliquidityandmarketsentiment
This Fed rate hike really hit hard, pushing the U.S. borrowing cost to 5.216%. In theory, the dollar should move, but they donât seem to be short of money at allâwhich suggests the world isnât really afraid of rate hikes. As a result, people in the market who like high-risk, high-reward games start to panic. Assets like Bitcoin, which donât have a printing press backing them, are naturally the first to take a hit. In short: the money hasnât left the stock market, but people are no longer willing to pile everything into the hottest tech stocks.
Why is this news important?
Fed rate hikes are old news, but this time is different. The 30-year U.S. Treasury yield at 5.216% is the highest since 1981âessentially a âhigh-risk warning cardâ to global investors. Why does that matter? Because the essence of crypto is betting that the dollar will lose value. But now the dollar doesnât seem to be afraid of losing value, so the risk in the bet increases sharply. Itâs like buying Bitcoin is betting: âThe U.S. will mess up and Iâll escape.â Now the U.S. says, âMoney is printed by me, but I print it pretty steadily,â and then your bet wobbles. Also, rate hikes directly tighten liquidity. The money that used to be borrowed to buy Bitcoin is no longer as accessible, so demand naturally falls.
Market impact
In the short term, Bitcoin and Ethereum are definitely likely to drop. At BTC $84,279.17, with a 24-hour decline of -2.39%, if the Fed keeps hiking, it could easily fall below $80,000. Looking at historical references: whenever the Fed hikes by 75 basis points or more, Bitcoin typically experiences a decent pullback. But in the long run? This Fed hike is aimed at a âsoft landing,â not creating a deflationary crashâmeaning they want to preserve the tech-stock bubble. So whether Bitcoin can hold up this round depends on whether other central banks join in the âcurrency warââfor example, if the Bank of Japan continues to overprint yen, Bitcoin could catch a breath again.
Trading approach
Bearishâat least it isnât safe until it drops below $80,000. If the Fed actually hikes beyond expectationsâfor instance, another hike of 100 basis pointsâBitcoin may have to test $77,000. If such an above-expected scenario happens, this judgment is invalid.
This article has no project sponsor involved, and the author does not hold any of the assets mentioned
$BTC $ETH #BTC #ETH
â ď¸ Not investment advice; predictions are for reference only
#USTreasuryyields,impactingBitcoinliquidityandmarketsentiment
