Crypto Volatility Alert!
Major FOMC Decision Incoming — Markets on Edge!
The May 6–7 FOMC meeting is creating ripples across all markets — and crypto is no exception. With only a 2.7% chance of a rate cut (CME FedWatch), expectations have shifted, and volatility is surging for both #long and #short positions.
What you need to know:
Fed rate remains at 4.25%–4.50% (unchanged since Dec 2024)
Q1 GDP shrank by 0.3% → possible early recession signs
Core PCE Inflation: 2.6% YoY
Gold hit a 2-week high at $3,357.63/oz, showing rising fear
S&P 500 pulled back after 9-day rally → investors on standby
With inflation cooling but growth contracting, and new tax policies raising recession alarms, the Fed might be preparing to cut rates later this year — if data worsens.
Crypto Impact:
Short-term caution: Less liquidity, stronger USD → headwinds for altcoins
Mid-term potential: If rate cuts come later, Bitcoin and Ethereum could rally alongside gold as hedges
Watch BTC/Gold correlation for clues
Suggested Moves (DYOR!):
Favor BTC/ETH over high-volatility alts
Stay alert for post-FOMC breakouts
Consider stablecoin positions or yield strategies while volatility plays out
Disclaimer: This post is for informational purposes only and does not constitute financial or legal advice. Always do your own research (DYOR) before making any investment decisions.
