Will Powell Stay On Course With Rate Hikes?
Federal Reserve Fed Fund Rates:
The Federal Reserve will be announcing its interest rate decision today at 2 PM EST. The market is expecting a 25 bps rate hike. This will bring the Fed's benchmark borrowing rate to a target range of 5%-5.25%.
Bitcoin ($BTC) & Ethereum ($ETH):
Liquidity, measured by market depth, has been declining since the FTX collapse for both BTC and ETH, approaching 1-year lows. The resulting price volatility and high trading costs makes it easier for large trades to move the market, causing sudden and significant price swings.
ETH/BTC is starting to rebound from the Shapella lows and might be ready to start a new uptrend soon, meaning that ETH would outperform BTC in the short term.
Target levels:
- ETH > $1,790 → Bullish
- ETH < $1,790 → Neutral with a bearish bias
- ETH < $1,690 → Bearish
Polygon ($MATIC):
Franklin Templeton recently announced the first U.S.-registered mutual fund to use a public blockchain for processing transactions and recording share ownership, supported by Polygon. Given that blockchains are 24/7, the fund (AUM of $270M+) is available to trade anytime.
View the full report here:?Market Note — May 3,?2023
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Our clients use our services to unlock liquidity and take advantage of current opportunities in the market. Visit our?website?today to learn more about our services and how SDM can help you to maximize your digital assets.