WS #16025
Probability of an October Fed rate hike has collapsed from 55% to 13% following comments from officials and Kevin Warsh's speech, which failed to justify further tightening. This dramatic shift indicates the market is now pricing in a definitive pause or pivot, which typically supports growth stocks and reduces pressure on the dollar. However, the initial reaction has been muted as investors weigh this liquidity relief against worsening geopolitical risks and corporate earnings concerns. Institutional demand for Bitcoin has reasserted itself with striking speed, as US spot Bitcoin ETFs drew $1.7 billion in inflows over a two-day period, pushing the price above the overall holder cost basis. This surge coincides with Interactive Brokers adding Ethereum staking to traditional brokerage accounts, signaling broader institutional integration of digital assets. The inflows suggest that despite equity market volatility, crypto is increasingly viewed as a distinct liquidity hedge or yield vehicle by institutional allocators.
Fed Rate Hike Odds Collapse
Probability of an October Fed rate hike has collapsed from 55% to 13% following comments from officials and Kevin Warsh's speech, which failed to justify further tightening. This dramatic shift indicates the market is now pricing in a definitive pause or pivot, which typically supports growth stocks and reduces pressure on the dollar. However, the initial reaction has been muted as investors weigh this liquidity relief against worsening geopolitical risks and corporate earnings concerns.
Institutional demand for Bitcoin has reasserted itself with striking speed, as US spot Bitcoin ETFs drew $1.7 billion in inflows over a two-day period, pushing the price above the overall holder cost basis. This surge coincides with Interactive Brokers adding Ethereum staking to traditional brokerage accounts, signaling broader institutional integration of digital assets. The inflows suggest that despite equity market volatility, crypto is increasingly viewed as a distinct liquidity hedge or yield vehicle by institutional allocators.