The "dove" sound of interest rate cuts has turned into an "eagle" call! Is the Federal Reserve's "faucet" about to be turned off?
Brothers, a key signal has emerged that could directly hit the brakes on this bull market. According to the latest market betting data, the probability of the Federal Reserve cutting interest rates in January next year has plummeted to around 20%. What does this mean? It means that the "spring liquidity" that the market was eagerly anticipating is likely to go up in smoke.
What’s even more alarming is that looking ahead to March next year, the probability of the Federal Reserve maintaining the current high interest rates is surprisingly close to 45%. In other words, not only is the imminent "red envelope" gone, but the monetary policy may remain tight in the next two to three months.
This is definitely not good news for the cryptocurrency market. The rise in the past few months has largely been driven by the expectation that the "Federal Reserve is about to turn to rate cuts." Liquidity is like the blood of the market, and expectations of rate cuts are the prelude to a transfusion. Now, this prelude has suddenly become faint, and may even be canceled, leading to a sharp increase in the market's "anemia" risk.
My advice is: fasten your seatbelt and prepare for intensified market volatility. When the biggest macro benefit (liquidity easing) has an expectation gap, all risk assets will face repricing. Bitcoin and mainstream coins may enter a phase of fluctuation or even correction to digest this sudden "hawkish" signal.
The market has just experienced a bloodbath, and you are trapped? Unsure of when to bottom out? Feeling lost and helpless about what to do? I will prepare for a big wave in the upcoming market, this time a successful all-in will definitely yield a bountiful return. Want to witness it? Join me in the Binance chat room.
