FOMC Primer

Wednesday’s FOMC press conference will likely lead to volatility in a highly correlated environment between crypto and U.S. equities.
Source: Tradingview

Currently, the market is pricing in an 86% probability of a 75bps hike versus an 14% probability of a 50bps hike. The odds for a 50bps hike have increased materially in the last week as chatter about a FED pivot has strengthened. A 75bps hike is still the most likely outcome, but due to rising expectations of a 50bps hike, a 75bps hike is poised to reflect negatively on the market.

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