So the CPI print came in hotter than expected today, and now the market's basically screaming that the Fed's gonna hike at least once more before year-end — CME pricing puts it over 90%. There's even a 40% shot at two more hikes.
Look, I've seen this movie before. Markets get spooked, rate expectations spike, then reality sets in. But this time feels a bit different because inflation's been stickier than anyone wanted to admit six months ago.
The vibe? Everyone's bracing for pain. Risk assets — crypto included — usually don't love this setup. Higher rates mean tighter liquidity, and tighter liquidity means less dumb money floating around looking for yield in speculative stuff.
Not saying it's guaranteed, but if you're holding anything leveraged or illiquid right now, maybe think twice. The Fed doesn't mess around when the data keeps surprising to the upside. Just saying — I've been burned before ignoring these signals.
Look, I've seen this movie before. Markets get spooked, rate expectations spike, then reality sets in. But this time feels a bit different because inflation's been stickier than anyone wanted to admit six months ago.
The vibe? Everyone's bracing for pain. Risk assets — crypto included — usually don't love this setup. Higher rates mean tighter liquidity, and tighter liquidity means less dumb money floating around looking for yield in speculative stuff.
Not saying it's guaranteed, but if you're holding anything leveraged or illiquid right now, maybe think twice. The Fed doesn't mess around when the data keeps surprising to the upside. Just saying — I've been burned before ignoring these signals.