Before the Federal Reserve's policy meeting next week, investors wait for further clues to determine the course of US interest rates and digital assets.
After ten consecutive rate hikes, markets now anticipate a 62% likelihood that the US central bank will pause at its June 13-14 policy meet, as shown by the CME Group's FedWatch tool.
But the tool shows a 70% chance of higher rates in July.
"There will be a plethora of market-moving data out next week. I'm trying to be more strategic about taking chances at the moment," said a chief investment advisor at a boutique alternative investment fund house in New York.
Short-term charts point to weakness and fading momentum, even as long-term forecasts split sharply between institutional-driven upside and warnings of a deep mean reversion.
With liquidity fading and demand still weak, Bitcoin’s repeated failure at $90,000 has traders bracing for continued range-bound action into the new year.
Regulator proposes 100% risk charge on crypto assets, lower charges for regulated stablecoins
Bank rolls out SGD and USD blockchain balances for 24/7 treasury management
The trade that once let equity investors proxy Bitcoin exposure is breaking down. With treasury firms underperforming their underlying assets, the model is shifting from accumulation to debt management—and many DATCOs may not make it through the next phase.
Institutional inflows are transforming crypto from a retail-led market into a derivatives-driven asset class, with options now central to risk, liquidity, and price formation.
Crypto markets are set to be shaped less by single data prints and more by deeper forces – central bank credibility, AI-driven risk cycles, tariff-led inflation pressures, and dollar liquidity – creating a year defined by volatility, not clean trends.
Short-term charts point to weakness and fading momentum, even as long-term forecasts split sharply between institutional-driven upside and warnings of a deep mean reversion.
