With the upcoming May FOMC meeting of the Federal Reserve System (FRS), CME "FedWatch" data indicates only a 2.7% probability of a 25 basis point rate cut in May. Expectations for rate cuts are being postponed, forcing investors to rethink strategies. Against the backdrop of stable FRS policy and the absence of signals for a rapid easing, the cryptocurrency and risk asset market is at a crossroads.
Experts suggest that the high likelihood of maintaining rates (over 97%) may hinder the growth of cryptocurrencies such as Bitcoin and Ethereum, which traditionally respond to low rates. Investors may consider reducing exposure to highly liquid assets in favor of more stable instruments, such as stablecoins or short-term bonds. At the same time, some analysts advise holding positions in crypto, given its long-term potential, especially if the economy remains resilient.
This uncertainty underscores the importance of flexibility. Investors can take advantage of diversification by spreading capital among cryptocurrencies, technology stocks, and traditional assets.
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