$BTC MF! The probability of the Federal Reserve staying put has surged to 77.9%, and the crypto liquidity structure needs to adjust first.
CME FedWatch now sees only a 22.1% chance of a rate cut in January. Cleveland Fed’s Hammack echoes the sentiment: there’s no reason to cut rates without inflation signals. As long as interest rates remain tight, the market’s easing timetable will be delayed.
BTC’s sensitivity to rates isn’t about macro narratives—it’s because Bitcoin is the purest duration-levered asset in the market. When cash yields better risk-free returns, marginal capital exits high-volatility assets first. The 2022 rate hikes didn’t crush BTC overnight; they drained liquidity and gradually wore down bullish patience.
The current scenario is similar: BTC may not crash immediately and could even trade sideways, appearing lifeless.
To put it bluntly: keep washing.
#Bitcoin #CryptoMarket #BTC #InterestRates #MarketLiquidity
