CoinShares: Bitcoin Shows Resilience, but the Risk of Further Federal Reserve Rate Hikes Has Not Yet Been Eliminated
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AT A GLANCE
CoinShares said that a weakening housing market gives the Federal Reserve room to pause rate hikes, but inflation still poses a risk of rate increases.
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CoinShares: Bitcoin Shows Resilience, but the Risk of Further Federal Reserve Rate Hikes Has Not Yet Been Eliminated
PANews October 23 reported that CoinShares' analysis indicates that the continued weakness in the U.S. housing market provides room for the Federal Reserve to pause rate hikes, but inflationary pressures remain a key constraint on monetary policy. The market generally expects the Federal Reserve to keep rates unchanged at its October 28 meeting, but the recently overheated CPI and PPI data mean that the risk of further rate hikes remains. The analysis believes that if the Federal Reserve October unexpectedly raises rates, it could trigger a greater shock by exceeding market expectations. Bitcoin has shown relative resilience this week amid volatility in risk assets, supported by a rebound in spot demand, improved equity market sentiment, and short covering. However, subsequent crypto market performance will still be driven primarily by interest-rate expectations and changes in liquidity; the policy buffer created by a weak housing market is not yet sufficient to offset inflation risks.
CoinShares' analysis indicates that the continued weakness in the U.S. housing market provides room for the Federal Reserve to pause rate hikes.
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Overheated CPI and PPI data mean that the risk of further rate hikes remains.
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The market generally expects the Federal Reserve to keep rates unchanged at its October 28 meeting.
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Bitcoin has shown relative resilience this week amid volatility in risk assets, supported by a rebound in spot demand, improved equity market sentiment, and short covering.
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The analysis believes that subsequent crypto market performance will still be driven primarily by interest-rate expectations and changes in liquidity.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
A weakening housing market may allow the Federal Reserve to pause rate hikes, but CPI and PPI remaining overheated could still drive future rate hikes. For Bitcoin, demand, market sentiment, and short covering currently provide support, but changes in interest rates and liquidity could still affect subsequent performance.
Why it matters to readers
Interest-rate expectations affect market liquidity and risk-asset performance; if rates are unexpectedly raised, the market could face a shock beyond expectations.
This shows that Bitcoin's price is influenced not only by its own buying and selling, but also by Federal Reserve interest-rate decisions and inflation data.
Risks and unknowns
This is a CoinShares analysis relayed by PANews; the evidence does not provide a link to CoinShares' original report.
October 28 Whether the Federal Reserve will keep rates unchanged at its meeting remains uncertain.
The evidence does not provide CPI、PPI or specific figures for Bitcoin spot demand.
Future rate hikes and their impact on the market are analytical judgments and have not yet occurred.
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CPI
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