Fed Uncertainty: Bitcoin and Ethereum Markets Are Avoiding Risk

Recent developments have increased investor interest in major crypto assets such as Bitcoin and Ethereum, while uncertainty in the markets has visibly risen. Bitunix analysts note that the recent interest rate cuts by the US Federal Reserve (Fed) have compelled investors to adopt a more cautious approach.

In global markets, significant developments are occurring during the process of digesting the Fed’s new interest rate decision. Experts express that the growing divisions within the Fed have created serious pressure on pricing. It has been observed that the trend towards major assets continues in the cryptocurrency market; however, it is noteworthy that investors have been avoiding aggressive risk-taking recently.

The evaluations made by the Bitunix analyst emphasize that the market is focusing not on the interest rate cuts but on the timing of the Fed’s future actions. In this context, it is stated that major financial institutions are divided on the Fed’s next moves. One group of analysts argues that improvements in inflation could open the door to new interest rate cuts starting in March, while the other group believes there may be a pause in January and a wait-and-see approach could dominate the first half of the year. This situation indicates that the markets are facing challenges in finding direction.

In discussions with Bitunix, some Wall Street institutions say that the Fed's recent decision could be seen as a “hawkish interest rate cut.” These comments indicate that the decision-making process under the leadership of Fed Chair Jerome Powell is becoming increasingly difficult. In such an environment, it appears that investors are focusing on maintaining the current structure rather than creating strong trends in the short term.

According to the analyst, markets will continue to seek direction through liquidity conditions and macro data rather than focusing on clear signals from monetary policy. The critical points for investors to monitor include the Fed’s future actions and the potential effects of these actions on the market. Therefore, the price movements of assets such as Bitcoin and Ethereum will be shaped within the framework of these uncertainties.