#FOMCMeeting

With only a 2.7% probability of a 25 bps rate cut in May (per CME FedWatch), it's clear that markets are adjusting to a “higher-for-longer” interest rate environment. For crypto and risk asset investors, this shift carries key implications:

🔹 Reassess Leverage & Risk: Elevated rates increase borrowing costs and reduce liquidity. Leveraged positions in crypto or high-beta stocks may face headwinds. Consider scaling back excessive risk exposure.

🔹 Focus on Fundamentals: In a tight monetary environment, projects and assets with strong fundamentals, cash flow (for equities), or utility (for crypto) tend to outperform speculative bets.

🔹 Rotation to Quality: Investors may rotate from speculative altcoins to more established names like BTC and ETH, which are increasingly viewed as macro-resilient digital assets.

🔹 Stablecoin & Yield Strategies: With real yields higher, stablecoins paired with DeFi or CeFi yield products may offer attractive low-volatility returns.

🔹 Watch Macro Correlations: Crypto has shown high correlation with tech and other risk assets. Fed policy shifts, inflation data, and bond yields will remain crucial signals.

📉 Until clarity on a rate cut emerges, expect sideways or cautious movement in crypto markets.

📊 How are you adjusting your allocations? Do you lean into BTC’s store-of-value narrative, or rotate into other assets? Join the discussion and share your strategy!