😵 BREAKING: The Fed just kept the pressure on $BTC.
Remember Kevin Warsh, the "Bitcoin-friendly" Fed Chair? Well, this week reality hit. The Fed held rates at 3.75%-4%, but the vote was 10-2, and two officials wanted an immediate hike. Warsh also stressed that inflation is still above the 2% target. 😬
The market got the message:
• Traders now price roughly an 86-87% chance of a rate hike in December
• $BTC briefly slipped under $80K and is now trading around $77K
• $BTC is on track for a fourth straight weekly loss
• October is closing red, about -4% for $BTC, in a month that has averaged gains of 18% since 2020
• Altcoins like $ETH and $SOL usually feel the pain too when Bitcoin turns lower
Why does this matter? Higher rates mean $BTC has to compete with safe returns near 4%. When money gets more expensive, risk assets feel it first.
One bright spot: $HYPE jumped as much as 17% this week after ICE, the owner of the NYSE, announced plans to bring Hyperliquid-based perps to the US. So not everything is red. 🔥
To be fair, not everyone is bearish. Some analysts say $BTC's next move may depend more on Treasury yields, the dollar and overall risk sentiment than on the Fed alone. And a hike is a market expectation, not a promise. Warsh declined to say what the Fed will do next.
So here's my honest read: being "crypto-friendly" doesn't mean easy money. Watch the inflation data and the December meeting closely. 👀
Where do you stand? Buying this dip, waiting for clarity, or staying on the sidelines? Tell me below 👇
Not financial advice. Always do your own research.
