As markets await the Federal Open Market Committee meeting, advanced analytical tools like the "FedWatch" from the Chicago Mercantile Exchange indicate a near consensus that the era of high interest rates will continue for a longer period.
With only a 2.7% chance of an interest rate cut in May, investors face a new reality where hopes for cheaper cash liquidity are delayed.
This reality compels holders of risk assets, primarily cryptocurrencies, to reassess their strategies.
Historically, digital assets like Bitcoin thrive in an environment characterized by low-interest rates, as investors seek higher returns away from traditional bonds.
However, with the continued tight monetary policy to curb inflation, risk assets are losing some of their appeal.
This does not necessarily mean the end of the bull market, but it requires a shift in investment approach.
Investors should now consider increasing their focus on projects with strong fundamentals and clear intrinsic value, rather than relying on liquidity waves that drive the entire market.
It may also be wise to further diversify portfolios, possibly allocating part of them to assets less affected by fluctuations in monetary policy.
The current stage requires greater patience and scrutiny, as studying projects in depth has become more important than ever to navigate this complex economic environment.
