Why are expectations of another Fed rate hike heating up again? The AI industry is at a critical juncture
Expectations of a Fed rate hike are rising. Tech stocks have plunged, wiping out nearly $4 trillion in value, and cryptocurrencies are being dragged down with them.
Last week, U.S. jobs data came in well above expectations, the unemployment rate hit a record low, and CPI continued to fall—but the market still wasn’t satisfied. Fed officials hinted that another rate hike may be needed, and markets now broadly expect rates could rise again in November. The news sent Wall Street into a frenzy: tech stocks fell across the board, losing nearly $4 trillion in a single day. AI stocks took the hardest hit, with giants like Nvidia and AMD tumbling. Investors are questioning whether AI has been overhyped, and now even the trade commission is looking to regulate it.
Impact on the market
- Short term: Expectations of a Fed rate hike are strengthening, so funds will continue flowing into safe-haven assets such as bonds, putting pressure on cryptocurrencies. BTC and ETH may continue trading around $75K and $2,200, respectively.
- Medium term: The sharp drop in tech stocks could trigger a reshuffling of the AI industry. Regulatory uncertainty is growing, which may offset positive factors for cryptocurrencies in the near term.
My take
I’m bearish on cryptocurrencies right now, especially ETH. The $2,200 support level looks under a lot of pressure. The Fed is taking a hawkish stance, and tech stocks keep weakening, so a short-term rebound will be difficult. Right now, this market is all about betting on how many times the Fed will raise rates, not reading the charts. Honestly, I’ve looked at the data, and this AI chill may be deeper than people think. I’m 70% confident in this view; I’ll leave the remaining 30% up to the market.
$BTC $ETH #BTC #ETH
⚠️ This is not investment advice
#USStocksSlipandCryptoMarketUnderBroadPressure
$BNB
Expectations of a Fed rate hike are rising. Tech stocks have plunged, wiping out nearly $4 trillion in value, and cryptocurrencies are being dragged down with them.
Last week, U.S. jobs data came in well above expectations, the unemployment rate hit a record low, and CPI continued to fall—but the market still wasn’t satisfied. Fed officials hinted that another rate hike may be needed, and markets now broadly expect rates could rise again in November. The news sent Wall Street into a frenzy: tech stocks fell across the board, losing nearly $4 trillion in a single day. AI stocks took the hardest hit, with giants like Nvidia and AMD tumbling. Investors are questioning whether AI has been overhyped, and now even the trade commission is looking to regulate it.
Impact on the market
- Short term: Expectations of a Fed rate hike are strengthening, so funds will continue flowing into safe-haven assets such as bonds, putting pressure on cryptocurrencies. BTC and ETH may continue trading around $75K and $2,200, respectively.
- Medium term: The sharp drop in tech stocks could trigger a reshuffling of the AI industry. Regulatory uncertainty is growing, which may offset positive factors for cryptocurrencies in the near term.
My take
I’m bearish on cryptocurrencies right now, especially ETH. The $2,200 support level looks under a lot of pressure. The Fed is taking a hawkish stance, and tech stocks keep weakening, so a short-term rebound will be difficult. Right now, this market is all about betting on how many times the Fed will raise rates, not reading the charts. Honestly, I’ve looked at the data, and this AI chill may be deeper than people think. I’m 70% confident in this view; I’ll leave the remaining 30% up to the market.
$BTC $ETH #BTC #ETH
⚠️ This is not investment advice
#USStocksSlipandCryptoMarketUnderBroadPressure
$BNB
