75bps hike - what does it mean?
Ultimately already priced into rates markets, but for crypto it’s not great news. Higher rates will continue to de-rate risk on assets. The higher rates are the less asset valuation are because the cost of money increases.
Falls in line with general thesis from ‘Nov 21 for those following since then. Ultimately, more pain is coming for assets in the short term. Fed hiking this much is aggressive, and means they’re worried about inflation. We need to see meaningful decreases in CPI prints now which is crucial.
But for now, this hasn’t happened since 1994, crypto was around since ~2010. Previous models, trend lines, patterns won’t work. It will break of all them. The world is in a different place. As I said a long time ago, people won’t be buying internet coins as long as there’s a struggle to pay energy and food prices. So hence the caution..
