#FedRateWatch
It is worth discussing the situation surrounding tomorrow's FOMC meeting in some detail. August's core CPI data came in slightly hotter than expected, showing a 0.3% increase. Consequently, the market-implied probability of a 25-basis-point interest rate hike has surgd to nearly 90%. The key question now is: will the Federal Reserve actually proceed with a rate hike this time? Given the current landscape, it appears the Fed might adopt a temporarily hawkish stance to keep inflation in check. However, it is difficult to characterize this as the beginning of a prolonged rate-hiking cycle. Continuous rate hikes would pose significant risks for the Fed, considering the existing economic pressures; therefore, this is likely to be a one-off decision. If a rate hike is indeed announced, we might witness a correction or bearish pressure on risk assets - such as Bitcoin and tech stocks - in the short term, as reduced liquidity typically causes these markets to stall. Conversely, amidst this uncertainty, gold could maintin its strong position as a hedging asset and exhibit bullish momentum in the long run.
My current trading strategy is quite straightforward. Regarding Bitcoin, rather than impulsively opening new high-leverage positions, I believe it is prudent to wait for a re-test of support levels and for market volatility to subside. For now, I am maintaining my spot holdings and watching for clear signals regarding future rate cuts or hikes before making any new entries. Let’s see how it plays out. 🤔
#FedRateWatch
It is worth discussing the situation surrounding tomorrow's FOMC meeting in some detail. August's core CPI data came in slightly hotter than expected, showing a 0.3% increase. Consequently, the market-implied probability of a 25-basis-point interest rate hike has surgd to nearly 90%. The key question now is: will the Federal Reserve actually proceed with a rate hike this time? Given the current landscape, it appears the Fed might adopt a temporarily hawkish stance to keep inflation in check. However, it is difficult to characterize this as the beginning of a prolonged rate-hiking cycle. Continuous rate hikes would pose significant risks for the Fed, considering the existing economic pressures; therefore, this is likely to be a one-off decision. If a rate hike is indeed announced, we might witness a correction or bearish pressure on risk assets - such as Bitcoin and tech stocks - in the short term, as reduced liquidity typically causes these markets to stall. Conversely, amidst this uncertainty, gold could maintin its strong position as a hedging asset and exhibit bullish momentum in the long run.
My current trading strategy is quite straightforward. Regarding Bitcoin, rather than impulsively opening new high-leverage positions, I believe it is prudent to wait for a re-test of support levels and for market volatility to subside. For now, I am maintaining my spot holdings and watching for clear signals regarding future rate cuts or hikes before making any new entries. Let’s see how it plays out. 🤔
#FedRateWatch
