đš The Fed minutes just gave crypto traders something important to think about.
đš WHAT DID THE FED MINUTES ACTUALLY SAY?
The latest FOMC minutes gave markets a complicated message.
The Fed raised rates by 25 basis points at its September meeting.
But the minutes did not show a clear appetite for a long series of hikes.
At the same time, officials remain concerned about persistent inflation.
So the current picture looks something like this:
Inflation concern â hawkish pressure
Weak labor data â pressure to be more cautious
October â markets currently lean toward a pause
December â markets increasingly expect another hike
And crypto traders care because:
Fed expectations â Treasury yields â USD â liquidity/risk appetite â crypto
The dollar is now near an 18-month high, while rising global yields and oil prices are adding another layer of pressure to risk assets.
FACT: The minutes showed concern about inflation.
INTERPRETATION: Markets are currently pricing a more complicated rate path.
SCENARIO: If yields and the dollar continue rising, crypto could remain sensitive to macro headlines.
Don't trade the headline.
Watch the reaction.
Which matters more to you for BTC right now: Fed expectations or Treasury yields?
#FedMinutesFocusOnOctoberPause #bitcoin #crypto #fomc
đš WHAT DID THE FED MINUTES ACTUALLY SAY?
The latest FOMC minutes gave markets a complicated message.
The Fed raised rates by 25 basis points at its September meeting.
But the minutes did not show a clear appetite for a long series of hikes.
At the same time, officials remain concerned about persistent inflation.
So the current picture looks something like this:
Inflation concern â hawkish pressure
Weak labor data â pressure to be more cautious
October â markets currently lean toward a pause
December â markets increasingly expect another hike
And crypto traders care because:
Fed expectations â Treasury yields â USD â liquidity/risk appetite â crypto
The dollar is now near an 18-month high, while rising global yields and oil prices are adding another layer of pressure to risk assets.
FACT: The minutes showed concern about inflation.
INTERPRETATION: Markets are currently pricing a more complicated rate path.
SCENARIO: If yields and the dollar continue rising, crypto could remain sensitive to macro headlines.
Don't trade the headline.
Watch the reaction.
Which matters more to you for BTC right now: Fed expectations or Treasury yields?
#FedMinutesFocusOnOctoberPause #bitcoin #crypto #fomc