The Fed meeting released three major signals! The crypto market may usher in new variables, and retail investors need to pay close attention!!
On August 21, the minutes of the Fed's July meeting were released, and three core trends may affect the crypto market:
Signal 1: Inflation is still high, and expectations for interest rate hikes are rising again
The minutes show that most officials believe that the current inflation risk is still higher than the employment risk, and the slowdown has stalled. If future data does not show improvement, interest rates may be raised again before the end of the year.
Impact on the crypto market:
Short-term pressure: Tightening liquidity may trigger a sell-off of risky assets, and Bitcoin may follow the correction.
Long-term benefits: The "anti-inflation" attribute of crypto assets may attract long-term investment from institutional funds.
Signal 2: Tariffs loom, and commodity prices become a new variable
The minutes explicitly mentioned for the first time the upward pressure of tariffs on the cost of imported goods, which the market interprets as a concern about the rise of trade protectionism.
Impact on the crypto market:
Increased demand for safe haven: If the tariff war escalates, Bitcoin's digital gold attribute may be re-priced.
Increased volatility: Trade policy uncertainty may be transmitted to the crypto field through traditional markets.
Signal 3: Interest rates remain high, and the market enters an "observation period"
Almost all officials support keeping the benchmark interest rate in the 4.25%-4.5% range, suggesting that the current interest rate is close to the neutral level.
Impact on the crypto market:
Marginal improvement in liquidity: The cost of capital no longer rises rapidly, and funds in the traditional market may gradually find new outlets.
Institutional layout window: If Grayscale, BlackRock and other institutions are approved for Bitcoin spot ETFs, they may accelerate their entry.
Special Brother's suggestion: Three moves to deal with the new situation
Keep a close eye on key nodes: At the Jackson Hole Global Central Bank Annual Meeting on August 25, Powell's speech may release more explicit signals.
Diversify asset allocation: Maintain a dynamic balance between traditional markets and crypto markets to avoid excessive exposure to a single asset.
Pay attention to compliance leaders: Mainstream currencies such as Bitcoin and Ethereum are more resilient in policy uncertainty and should be given priority in the portfolio.
Every policy shift by the Federal Reserve is a reshuffle of global capital. For the crypto market, this is both a challenge and an opportunity. Special Brother will continue to follow up on the latest trends and embark on a new journey of wealth with you!
Special Brother's sickle is faster than the dog dealer's! Follow me and I'll teach you how to counter-cut the market!
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