What will the Fed do next? Crypto investors prepare for the impact

What about cryptocurrencies?

Cryptocurrency markets, closely linked to risk appetite and liquidity trends, are watching the Fed like a hawk. Some traders expect an emergency cut in rates that could rekindle risky assets such as Bitcoin and Ethereum. Others speculate that Trump may reverse the course and completely suspend tariffs. But none of these results seems likely in the short term.

As Dey There explains, we are not yet in total crisis mode. U.S. Treasury yields, although rising, have not reached critical levels. Stock indices did not fall more than 50%, and credit markets remain relatively functional.

However, if the situation deteriorates, the Fed’s first measure will not be a drastic cut of 100 basis points. It is most likely to involve a temporary bond purchase operation to stabilize market volatility - without signaling a complete quantitative loosening.