š„Federal Reserve Rate Cut Anticipation & Crypto Surgeš„
šThe Fed is widely expected to cut interest rates by about 25 bps at its October 29 meeting, moving the policy rate into the ~3.75%ā4.00% range.
š§ØHistorically, rate cuts = more liquidity = risk-assets like crypto often benefit.
Post angle ā āSpot traders preparing for liquidity wave in crypto triggered by U.S. rate cutsā.
šDollar Weakness + Crypto Correlation -
When U.S. rates fall, the dollar often weakens, which can push up nonāUSD denominated assets like crypto.
Post angle ā āIf the dollar falls, crypto goes higher ā the next leg is now being setā.
šSell-the-Newsā Risk Around Rate Cuts for Crypto -
Even though a cut is expected, a lot of that may already be priced in ā risk that after the official decision the market will take some profit.
Post angle ā āBe ready: Itās not only about the cut, but how the Fed speaks afterwards. Spot traders must watch for the reaction, not just the actionā.
šLabor Market Weakening + Spot Crypto Opportunity -
The Fed has flagged that the job market is showing signs of cooling which gives more ammunition for future cuts.
Post angle ā āThe macro narrative is shifting from inflation fear to slowing economy ā which means spot crypto stands out in the risk-asset universeā.