The Fed Has No Choice But To Hike - Here's Why Crypto Should NOT Panic #FedRateWatch
Everyone is shocked - after 3 years of no hikes, the Fed is about to hike again this week. Why? August core CPI printed 0.3% MoM clean, energy prices are back above $100 on Iran war escalation, and core is sticky because of wireless services + housing. Fed funds futures now show 90%+ odds for a 25bp hike on Sept 16.
This is NOT a one-off insurance hike. The Fed tried to be dovish in June-July thinking inflation cooled to 3.5%, but Warsh just told us at Jackson Hole: inflation must return to 2% "clearly and at sufficient speed". With jobs still strong at 162k, they have room to hike. I expect Sept is just the start - another hike in December is on the table.
So what happens to assets?
Don't panic sell. History shows the first hike after a long pause is often bought.
- BTC: Yes, initial dump to $101k likely on rate shock, but remember BTC was born in high-inflation era. If Fed is hiking because inflation is back, hard assets win in 3-6 months. I'm looking to accumulate.
- Tech Stocks: Short term pain for Nasdaq. Long term, AI earnings can absorb higher rates.
- Gold: The real winner. Gold loves when Fed admits inflation is not dead.
My trade: I sold 50% tech last week, rotated 30% into gold (GLD) and holding BTC spot. On FOMC day, if Powell/Warsh hikes 25bp but says data-dependent ahead, I will aggressively long BTC for Q4 rally. If he says more hikes coming, I will sit on gold.
Hike now = cut later. That's bullish for 2027.
@Binance Square Official
What are you doing?
#BitcoinFalls4% #USSenateBlocksClarityAct
#FedRateWatchCreate
Everyone is shocked - after 3 years of no hikes, the Fed is about to hike again this week. Why? August core CPI printed 0.3% MoM clean, energy prices are back above $100 on Iran war escalation, and core is sticky because of wireless services + housing. Fed funds futures now show 90%+ odds for a 25bp hike on Sept 16.
This is NOT a one-off insurance hike. The Fed tried to be dovish in June-July thinking inflation cooled to 3.5%, but Warsh just told us at Jackson Hole: inflation must return to 2% "clearly and at sufficient speed". With jobs still strong at 162k, they have room to hike. I expect Sept is just the start - another hike in December is on the table.
So what happens to assets?
Don't panic sell. History shows the first hike after a long pause is often bought.
- BTC: Yes, initial dump to $101k likely on rate shock, but remember BTC was born in high-inflation era. If Fed is hiking because inflation is back, hard assets win in 3-6 months. I'm looking to accumulate.
- Tech Stocks: Short term pain for Nasdaq. Long term, AI earnings can absorb higher rates.
- Gold: The real winner. Gold loves when Fed admits inflation is not dead.
My trade: I sold 50% tech last week, rotated 30% into gold (GLD) and holding BTC spot. On FOMC day, if Powell/Warsh hikes 25bp but says data-dependent ahead, I will aggressively long BTC for Q4 rally. If he says more hikes coming, I will sit on gold.
Hike now = cut later. That's bullish for 2027.
@Binance Square Official
What are you doing?
#BitcoinFalls4% #USSenateBlocksClarityAct
#FedRateWatchCreate
