🚨 The Fed Signals Rate Hike, Bitcoin Faces Major Test


🏦 The Fed is becoming more "hawkish"
* New York Fed President John Williams believes inflation risks have increased significantly.
* He proposes removing language implying that the Fed's next move will be a rate cut.
📈 Some Fed members publicly mention raising interest rates
* Dallas Fed President Lorie Logan warns that rates may need to rise further this year to control inflation.
* Cleveland Fed President Beth Hammack says if current trends continue, the Fed may need to act soon.
💼 Economic data supports a hawkish stance
* The latest jobs report beats expectations for the third consecutive time.
* Inflation remains around 3.8%, significantly above the Fed's 2% target.
* The market is beginning to price in the possibility of an earlier rate hike by the Fed.
📅 June 11 and June 17 are two key milestones
* June 11: Release of the new US CPI data.
* June 17: Fed monetary policy meeting.
* Higher-than-expected CPI could reinforce the likelihood of the Fed shifting to a rate hike stance.
How will this affect Bitcoin?
⚠️ High interest rate environments are usually unfavorable for Bitcoin
* Increase the appeal of bonds and cash.
* A stronger US dollar puts pressure on risk assets.
* Market liquidity declines.
* Borrowing costs increase.
📉 Bitcoin has reacted negatively
* Dropped below $60,000 after the jobs report.
* Currently testing key technical support levels.
* Bitcoin ETF capital flows are also showing signs of weakening.
$BTC $GT $ETH
BTC-1.9%
GT-3.45%
ETH-5.78%
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