#FOMCMeeting
With the Fed’s May FOMC meeting approaching and CME “FedWatch” data showing only a 2.7% probability of a 25 bps rate cut, investor sentiment around monetary easing continues to cool. This diminished likelihood of imminent rate cuts signals a potentially prolonged period of tighter financial conditions. In this environment, investors may need to recalibrate their allocations, particularly in crypto and other high-beta risk assets. Crypto markets, which often thrive on liquidity and lower rates, may face headwinds in the absence of dovish policy. Investors should consider shifting toward assets with stronger fundamentals or reduced volatility. Diversification into less rate-sensitive sectors, increasing stablecoin allocations, or selectively holding blue-chip crypto assets like Bitcoin and Ethereum may help mitigate downside risk. Additionally, maintaining dry powder for opportunistic buying during volatility could be wise. How actively are you currently managing your portfolio in response to macro developments?