Whale's Tradingview: Why The Fed's 'Gift' Won't Fuel A Crypto Santa Rally
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BloFin Research28 FollowersFollow5ShareSavePlay(8min)CommentsSummaryThe Fed's resumption of balance sheet expansion objectively benefits the stock market, while simultaneously weakening the US dollar and driving a sustained long-term rise in gold and silver prices, with the euro also benefiting.However, apart from a few cryptocurrencies like Bitcoin, the crypto market, as a dollar-denominated offshore equity-like market, struggles to compete with precious metals and stock indices due to investors' limited risk appetite.Therefore, further reducing its allocation may be a better option. Getty Images A Not-So-Dovish Decision Yesterday, the Federal Reserve announced the outcome of its final FOMC meeting of the year. Although officials delivered a rate cut for the third consecutive meeting, there is unusual discord within the ranks regarding whether inflation orThis article was written byBloFin Research28 FollowersFollowBloFin Research focuses on crypto research and analysis, dedicated to providing institutional-grade insights into the digital asset market. Our work covers major crypto assets, market trends from a macroeconomic perspective, and industry-wide studies on key developments shaping the digital asset ecosystem.Quick InsightsHow does the Fed's current stance impact long-term crypto valuations?Sustained high long-term rates and limited liquidity injections keep institutional investors cautious, reinforcing long-term bearish expectations for BTC, ETH, and other major crypto assets.What is the recommended risk management approach for crypto exposure now?Incorporate far-month put protection, reduce outright crypto risk, and use gains from robust equity assets like the Mag 7 to fund option premiums.How do current yield differentials affect institutional crypto positioning?With BTC's implied forward yield nearly matching T-bond yields and ETH lagging, holding crypto offers little comparative advantage, diminishing institutional appetite for long exposure.Recommended For You