Another Fed official has put “higher for longer” on the table.
Latest remarks from Dallas Fed President Lorie Logan: the current tightening cycle is not over, and rates will need to rise at least twice more, by 25 basis points each time. This echoes Waller’s hawkish stance that a 50-basis-point hike could be warranted if necessary, prompting markets to further scale back bets on a policy pivot.
The outlook is broadly bearish for BTC, ETH, and the crypto market as a whole: higher risk-free rates directly make cash and short-term Treasuries more attractive, draining funds from risk assets. High-valuation, highly leveraged altcoins face the most pressure, while on-chain lending and stablecoin interest-rate conditions will tighten in tandem.
In the short term, keep an eye on two things: whether the 2-year Treasury yield can stay above 4.7%, and whether the U.S. Dollar Index strengthens in tandem. A rise in both would cap the rebound. Rate repricing driven by officials’ remarks tends to happen quickly and sees frequent reversals, so chasing gains calls for stricter discipline. Waiting for signs of support on a pullback is steadier than blindly piling in.
Source: Jinse Finance
Which are you watching more closely: the 2-year Treasury yield or the U.S. Dollar Index?
Image 1: Fed’s Logan: At least two more rate hikes needed, 25 basis points each · Image accompanying source report
Image source: https://www.jinse2.com/lives/540410.html
Latest remarks from Dallas Fed President Lorie Logan: the current tightening cycle is not over, and rates will need to rise at least twice more, by 25 basis points each time. This echoes Waller’s hawkish stance that a 50-basis-point hike could be warranted if necessary, prompting markets to further scale back bets on a policy pivot.
The outlook is broadly bearish for BTC, ETH, and the crypto market as a whole: higher risk-free rates directly make cash and short-term Treasuries more attractive, draining funds from risk assets. High-valuation, highly leveraged altcoins face the most pressure, while on-chain lending and stablecoin interest-rate conditions will tighten in tandem.
In the short term, keep an eye on two things: whether the 2-year Treasury yield can stay above 4.7%, and whether the U.S. Dollar Index strengthens in tandem. A rise in both would cap the rebound. Rate repricing driven by officials’ remarks tends to happen quickly and sees frequent reversals, so chasing gains calls for stricter discipline. Waiting for signs of support on a pullback is steadier than blindly piling in.
Source: Jinse Finance
Which are you watching more closely: the 2-year Treasury yield or the U.S. Dollar Index?
Image 1: Fed’s Logan: At least two more rate hikes needed, 25 basis points each · Image accompanying source report
Image source: https://www.jinse2.com/lives/540410.html
