Will the Fed Hike Again? The Battle to Defend $83,000 Begins
The minutes came out last night, and the market immediately changed course. After raising rates by 25 basis points in September to 3.75%-4%, most officials said they would hike once more this year. The 10-year U.S. Treasury yield surged to 5.36%, its highest level since 2002. Against this backdrop, it is no surprise that crypto is falling.
$BTC is currently around $83,000, with a low near $82,000. $700 million was liquidated over 24 hours, 90% of it from long positions. $83,000 is the only line of defense right now. If it holds, this is the short-term bottom; if it breaks, the next level is the round $80,000 mark. As long as the 10-year yield does not retreat, it will be difficult for BTC to strengthen independently.
$ETH H is significantly weaker than BTC, currently around 2,560, down nearly 5% over 24 hours. It has been hammered down from 2,700 without even a decent rebound. If 2,560 breaks, watch 2,500—this level is more dangerous than BTC.
In short: Until rate-hike expectations are priced in, do not fight the trend. If you really want to buy the dip, at least wait for Treasury yields to peak and retreat, and for BTC to stabilize above $83,000.
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