đŹ Why Powellâs âCautionâ Warrants Attention
1 Rate Cut UncertaintyâšPowell emphasized that a December rate cut is ânot guaranteedâ, tempering expectations for sustained liquidity inflows.
2 Risk Asset SensitivityâšCryptocurrencies function as high beta risk assets. Reduced easing prospects could prompt capital rotation away from volatile sectors.
3 Dollar Strength DynamicsâšPersistent high rates would likely bolster the USD, exerting downward pressure on crypto valuations.
4 Institutional Flow RiskâšRecent crypto momentum has been institutional driven. A less accommodative macro backdrop may decelerate or reverse these inflows.