A major trading desk strategist just broke down two scenarios for today's Fed announcement - and both could shake up risk assets pretty hard.
The bull case? If Powell signals rate cuts are back on the table sooner than expected, we might see liquidity flowing back into crypto and growth plays. Markets have been pricing in a hawkish hold, so any dovish surprise could trigger a relief rally.
Bear scenario hits differently though. If the Fed stays aggressive on fighting inflation - or worse, hints at holding rates higher for longer - expect a flight to safety. That usually means pain for BTC, ETH, and basically anything that thrives on loose money.
What's interesting is how fast sentiment can flip on a single press conference. Traders are already positioning for volatility spikes around the 2pm ET decision.
Either way, today's move will likely set the tone for Q2. Whether you're long or hedged, buckle up - macro still runs this show.
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MemeKingNFT
· 12-13 20:29
Powell's words directly determine whether our quarter will be a feast or just soup...
It's the same old story—cut rates, go up; hike rates, go down. It feels like we're all in his hands.
Waiting until 2 o'clock. If this doesn't work out, I'm just going to completely lay flat. I'm too exhausted, brother.
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SellLowExpert
· 12-13 12:27
Once again, just one word from Powell might cause me to get liquidated.
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GasFeeCrier
· 12-10 20:56
If Powell signals a surprise rate cut today, I don't believe anyone would dare to short Bitcoin.
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CodeSmellHunter
· 12-10 20:56
It's the usual Fed decision-making show again. So damn boring.
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ParanoiaKing
· 12-10 20:49
It's the same old story, just wait for Powell to speak.
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Lonely_Validator
· 12-10 20:46
Powell is about to stir up trouble again; no one can save him with a shrug.
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Basically, it's a gamble on Powell's words—either enjoy the ride or get your face slapped.
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Powell: I have two good news... Market: None are good.
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This time, it's not a technical issue; it all depends on what the Fed guy says.
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It's always like this—one sentence decides the fate of the crypto world, really absurd.
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Whether to go long or short all depends on the mood of point 2, truly invincible.
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Just waiting for today's liquidation feast haha.
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Hey, it's hard to tell whether this thing is dovish or hawkish; anyway, I’m hiding today.
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It feels like Powell has been manipulated by the market; whatever he says, I do the opposite.
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governance_lurker
· 12-10 20:36
Honestly, whenever Powell opens his mouth, it's either to rescue the market or to harvest the little guys—those are the only two options.
Here we go again, always saying "Today’s decision is everything," but in the end? It all depends on how the next few months unfold.
Around 2 o'clock, the volatility was quite significant, but I bet five bucks that it will reverse course again before the close.
Macro runs the show… alright, anyway, my holdings have long been smoked out by macro factors.
How likely do you think a dovish surprise is? Feels like the market is just self-indulging.
A major trading desk strategist just broke down two scenarios for today's Fed announcement - and both could shake up risk assets pretty hard.
The bull case? If Powell signals rate cuts are back on the table sooner than expected, we might see liquidity flowing back into crypto and growth plays. Markets have been pricing in a hawkish hold, so any dovish surprise could trigger a relief rally.
Bear scenario hits differently though. If the Fed stays aggressive on fighting inflation - or worse, hints at holding rates higher for longer - expect a flight to safety. That usually means pain for BTC, ETH, and basically anything that thrives on loose money.
What's interesting is how fast sentiment can flip on a single press conference. Traders are already positioning for volatility spikes around the 2pm ET decision.
Either way, today's move will likely set the tone for Q2. Whether you're long or hedged, buckle up - macro still runs this show.