All attention is on the Fed as the latest FOMC meeting has ended. Interest rates were left unchanged, however, it certainly did not feel neutral. Hawkish signals were sent from policy makers as they signify risk that suggests increasing interest rates are on the horizon, as inflation remains higher than desired.
Now, this is a moment of recalibration mentally for crypto traders. Assets like $BTC and $ETH showed robust behavior initially after the meeting, however we saw an influx of volatility shortly after Powell's statement.
๐ Tighter monetary policy = Less risk appetite
๐ But crypto thrives on uncertainty.
Historically, when faced with macro shocks, Bitcoin has taken those shocks much better than traditional assets and the question now is; will crypto decouple again or the fear that is tearing through Wall Street materialize once again for our space?
Watch for key support/resistance zones, but be aware that the next 48 hours could dictate the short-term trend.
Stay sharp. Trade smart.
