With the core CPI rising 0.3% month-over-month in August, and the likelihood of the Federal Reserve raising rates by 25 basis points this week approaching 90%, the market is at a crucial turning point.
1. Interest rate outlook: a one-off decision or a long cycle?
I expect the Federal Reserve to raise interest rates this week by 0.25% to address recent inflation pressures. However, the available data suggests that this will be a one-off adjustment rather than the start of a prolonged tightening cycle; the main goal is to ensure inflation stability without pushing the economy into a deep recession.
2. Expected impact on digital and traditional assets:
Bitcoin (BTC): a temporary bearish effect at the moment of the announcement due to liquidity absorption, followed by a gradual upward rebound once uncertainty in the market dissipates.
Technology stocks: a short-term bearish pressure due to higher financing costs, followed by a gradual stabilization for companies with strong cash flows.
Gold: sideways movement with an upward bias, as gold continues to be an excellent hedge against inflation concerns and economic volatility.
3. My trading and portfolio plan:
Currently, I rely on a gradual accumulation strategy (DCA) on Bitcoin and gold at key support levels, with stop-loss orders enabled to protect capital while the decision is being made.
Share your market expectations and how you’re managing your trades right now! 👇
#FedRateWatch #BTC #BitcoinFalls4% $BTC
