đĄ Bitcoin Wobbles Before Fed Decision â Whatâs Going On?
Bitcoin (BTC) slipped to $59,500 on Binance today, just before tomorrowâs big FOMC (Federal Open Market Committee) meeting. đŹ
Traders are on edge as the Fed is expected to keep interest rates unchanged â but itâs the long-term outlook thatâs shifting fast.
đ The Numbers
According to the CME FedWatch Tool:
⢠95.6% expect no change in rates (holding at 5.25%â5.50%)
⢠Only 4.4% believe weâll see a rate cut
Thatâs a huge turnaround. Just 4 months ago, many were betting on 6 rate cuts this year. Now?
⢠The market expects just 1 cut
⢠Odds of no cut at all? 36%
⢠Chances of 2+ cuts? Down to 31%
đ Stagflation Risk on the Rise
Inflationâs not falling fast enough, and growth is slowing â thatâs a combo known as stagflation.
Hereâs whatâs happening:
⢠US GDP grew only 1.6% in Q1 (vs 2.2% forecast)
⢠Core PCE inflation jumped to 3.7% from 2.0%
Fed Chair Jerome Powell says the data hasnât boosted their confidence. Translation?
đ Donât expect cuts anytime soon. Rates may stay higher for longer.
đ BTC Reacts to Macro Moves
Bitcoin fell below $62K earlier this week on stagflation fears.
A brief pump above $64K came after the Hong Kong launch of spot BTC & ETH ETFs â but it didnât last.
With the Fed meeting tomorrow, investors are playing it safe. đ§