BTC fell below $81,000 yesterday. What was the real trigger?
The main reason for the drop was still
Fed Governor Waller made it clear: if the data meets expectations, the Fed still needs to keep raising rates
Yesterday’s meeting minutes only told the market: “Most officials think there may still be another increase this year.”
Waller further told the market today:
It’s not just about discussing the possibility; he himself does believe rates still need to be raised, though the pace of hikes can be flexible.
What we still need to focus on in this is this passage, which I think was the trigger.
“Markets generally believe the Federal Open Market Committee (FOMC) may raise the policy rate by 50 basis points over the next few months”
In other words, this was above expectations. People had already largely accepted a 25-basis-point hike. But now, with 50 basis points suddenly mentioned, the macro pressure instantly doubled, meaning there could be two hikes. That is also why the market quickly dropped to around 80,000.
$BTC $ETH
The main reason for the drop was still
Fed Governor Waller made it clear: if the data meets expectations, the Fed still needs to keep raising rates
Yesterday’s meeting minutes only told the market: “Most officials think there may still be another increase this year.”
Waller further told the market today:
It’s not just about discussing the possibility; he himself does believe rates still need to be raised, though the pace of hikes can be flexible.
What we still need to focus on in this is this passage, which I think was the trigger.
“Markets generally believe the Federal Open Market Committee (FOMC) may raise the policy rate by 50 basis points over the next few months”
In other words, this was above expectations. People had already largely accepted a 25-basis-point hike. But now, with 50 basis points suddenly mentioned, the macro pressure instantly doubled, meaning there could be two hikes. That is also why the market quickly dropped to around 80,000.
$BTC $ETH