Scan to Download Gate App
qrCode
More Download Options
Don't remind me again today

The Federal Reserve's hawkish stance is completely extinguishing the cryptocurrency market's hopes for interest rate cuts.



On November 17, the rotation of Federal Reserve regional presidents is something that encryption investors must pay attention to. Whether it's the current voting members or the new chairpersons who will take office next year, they are almost all from the hawkish camp – their primary task is to curb inflation, and as for interest rate cuts? They are basically not on the agenda.

The current presidents of the Boston Fed and the St. Louis Fed either set extremely high thresholds for interest rate cuts or insist on maintaining a tight policy until inflation is fully controlled. The incoming leaders of the Cleveland and Dallas Feds next year have an even firmer stance against inflation. While interest rate hikes are unlikely, rate cuts are absolutely a distant expectation.

What does this mean for the encryption market?

The Federal Reserve's refusal to loosen monetary policy will continue to tighten dollar liquidity. Assets like Bitcoin and Ethereum, which are highly dependent on liquidity, will face significantly increased difficulty in rising. Don't expect the Federal Reserve to act as a "market-saving hero" anymore; in the short term, the market is highly likely to continue to digest pressure in a state of fluctuation, and it may even face a new round of adjustments.

But has the encryption market missed the opportunity? Not necessarily. When the Federal Reserve's hawkish stance reaches its peak, it may give rise to new flows of capital and investment opportunities.

The market is never short of opportunities; the key is to maintain calm judgment. Keeping a continuous focus on on-chain data and macro policies will allow you to find certainty amidst the fluctuations.
BTC-0.87%
ETH-0.62%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
ConfusedWhalevip
· 3h ago
The interest rate cut is once again about to fall through, these hawks are really ruthless. Wait, is this round of Fed chair rotation really all hawks? Then our dream of rate cuts might really need to wake up. Tight liquidity is indeed unfriendly to the crypto world, but speaking of finding opportunities in fluctuations... that's what we should be focusing on. Interest rate cuts seem far away, but opportunities are still there, I love this logic.
View OriginalReply0
PseudoIntellectualvip
· 3h ago
Now there's no chance of interest rate cuts at all, the Fed is indeed a hardline hawk. I really thought there would be a turning point in November, but now we have the tough chairman in charge... we have to acknowledge the tight liquidity. Without interest rate cuts, we will have to wait for a change in capital flow, let's see who can seize the opportunity in this chaotic situation.
View OriginalReply0
ChainSpyvip
· 3h ago
Laughing to death, can't wait for the interest rate cut, this group of hawks in the Fed is really something. Damn, is this another wave of "oscillation" before playing suckers? How many times has this trick been played? The interest rate cut seems far away... why are there still people hoping the Fed will save the market? Just go with your own pace, everyone. Dollar tightening is like a club to Bitcoin, this time the difficulty is indeed high. Instead of waiting for the Fed, it’s better to pay attention to on-chain data, maybe you can buy the dip. Oh my, next year's chairman is even more hawkish... this time it's really rolled to the bottom. Don't panic, extreme hawkishness is often a signal for reversal, history is always so ironic. If the Fed doesn't save the market, we will bail-in ourselves, finding the liquidity trap is the way to go. Actually, the more desperate you are, the closer the opportunity is, but the premise is that you have to survive to that moment. Tight liquidity = concentrated chips, how can there still be people who don't understand? With hawks in charge, short positions are celebrating, but the market is not that simple.
View OriginalReply0
RatioHuntervip
· 3h ago
Here comes the trap of hawkish rotation again, directly sentencing the dream of interest rate cuts to death. No hope, everyone. The Fed is determined to fight inflation to the end, so let's stop dreaming. Now liquidity is really going to tighten, BTC and ETH will have to rely on themselves to perform well in the short term. Instead of waiting for a market rescue, it's better to look at on-chain data; there are opportunities amid risks. Interest rate cuts? Dream on, next year will continue to be suppressed by the hawkish stance.
View OriginalReply0
DogeBachelorvip
· 3h ago
I already knew the Fed wouldn't go easy, so don't even think about interest rate cuts. Those who should be Coin Hoarding have already done so. --- It's another hawkish combo, so I've completely given up hope, what are we waiting for? --- Dollar tightening = pressure on coin prices, this logic is sound, but opportunities need to be sought out by ourselves. --- To be honest, I've long stopped having any illusions about this November situation; now it's just about who can survive to the next cycle. --- Relaxing? Impossible. Rather than waiting for interest rate cuts, let's see whose fundamentals can hold up. --- Alright, continue the fluctuations, I'm used to it anyway, I'll keep burying my spare cash. --- On-chain data and macro? It's still better to see whose funds are quietly entering the market... --- How long can this round of hawkishness last? Only when it reaches its peak will it become an opportunity; entering now is just catching a falling knife.
View OriginalReply0
EternalMinervip
· 3h ago
Interest rate cut? Don't dream about it, brother, it's all hawkish, determined to fight inflation. To be honest, this rotation is just pouring cold water on the market, and it's indeed tough in the short term. There are still opportunities, the key is to see who can keep their cool. Liquidity being tight is real, but this environment can actually filter out the real projects. The Fed won't rescue the market, we can't just lay back either, focusing on on-chain data is the way to go. This adjustment might continue, so prepare mentally. Instead of waiting for the Fed, it's better to research those altcoins that are actually rising. That's the overall macro situation, and it’s about who can buy at the bottom during the trough.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)