September FOMC is approaching, and the market is watching the Federal Reserve closely. With core CPI rising 0.3% month-over-month in August and expectations for a 25-basis-point rate hike approaching 90%, I expect the Fed to remain focused on inflation and financial conditions.
If the Fed raises rates by 25 bps this week, I believe the immediate reaction could be mixed. Bitcoin and technology stocks may face short-term pressure because higher rates generally reduce liquidity and increase the cost of capital. Gold could also experience volatility, although its reaction will depend on the Fed’s forward guidance and expectations for future inflation.
For BTC, I would avoid chasing the first move after the announcement. I would rather wait for confirmation of the market direction and look for a better entry after volatility settles. If the Fed signals that this is only a limited move rather than the beginning of a long hiking cycle, risk assets could recover quickly.
My key focus after the FOMC will be the Fed’s statement, Powell’s comments, inflation data and market reaction. The rate decision itself is important, but the future path of monetary policy may matter even more.
What do you expect after the September FOMC: bullish or bearish for BTC, tech stocks and gold?