• A crypto market strategist known as The Carter has warned of a potential “bloodbath” in risk assets, including the crypto market, ahead of Wednesday’s important Federal Reserve (Fed) meeting.
• According to The Carter, Fed Chair Jerome Powell will come out in a more forceful and hawkish way on Wednesday than the market currently expects, leading to a sharp sell-off.
• The strategist believes that Powell will attempt to “re-tighten financial conditions” by forcefully addressing rate cuts head-on.
As the Federal Reserve prepares to meet on Wednesday to discuss the state of the economy, one crypto market strategist is warning of a potential “bloodbath” in risk assets, including the crypto market.
The strategist, who goes by the Twitter username The Carter, believes that Fed Chair Jerome Powell will come out in a more forceful and hawkish way on Wednesday than the market currently expects. According to The Carter, this could lead to a sharp sell-off across all risk assets, as Powell will attempt to “re-tighten financial conditions” by forcefully addressing rate cuts head-on.
The Carter defended his view by describing Powell as “perhaps the most transparent Fed Chair in history.” He then referred to earlier statements from Powell, where he indicated that “overtightening” is less of a risk for the economy than not doing enough to get inflation down to its target.
The strategist also pointed out that Powell has the tools to support economic activity strongly if the Fed overtightens policy. This, according to The Carter, could have serious implications for the crypto market as well as other risk assets, leading to a “bloodbath” of sorts.
The implications of the Fed’s meeting could be far-reaching, as the decisions taken will ultimately affect the entire global economy. It remains to be seen what the outcome of the meeting will be, but one thing is for sure: any decisions made by the Fed could have a huge impact on the markets and the crypto space.
For any investors looking to protect their investments, it is important to keep a close eye on the Fed’s meeting and the decisions it makes. While a “bloodbath” is not a certainty, it is a possibility that should not be ignored.