Finance News

Story: Goldman Sachs Shifts to Fed Rate Hike, Sparking Concerns for Crypto Markets

By Bruce Buterin

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Why This Rate Call Hits Crypto Hard. Higher borrowing costs are bad news for risk assets.

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Fed Still Hasn't Confirmed Anything. Here's the thing: the Federal Reserve hasn't actually said what it's going to do.

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Goldman Among a Broader Shift. Goldman Sachs didn't move in isolation. The revision came as part of a wider recalibration across…

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Goldman Sachs changed its mind. Late Friday, the bank scrapped its earlier call for no rate move and swung to predicting a Federal Reserve hike next week.

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The reversal wasn't subtle. Goldman had been one of the more cautious voices among big Wall Street firms, holding to a no-change view while other banks quietly shifted.

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Higher borrowing costs are bad news for risk assets. That's pretty much the baseline view across trading desks, and crypto sits firmly in the risk-asset bucket.

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It's not just a theoretical concern either. The anticipation alone has already sparked discussions among analysts about what a confirmed hike means for equity and bond markets —…

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Goldman's flip probably accelerated some of that repositioning. Investors may be trimming risk heading into the Fed announcement, which is now shaping up to be one of the more…

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Here's the thing: the Federal Reserve hasn't actually said what it's going to do. Goldman Sachs revised its forecast. Other banks revised their forecasts.

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Related: Gold at $4,347 on Edge as Fed Rate Hike Odds Surge to 67%

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That gap between Wall Street's expectations and the Fed's official silence is where markets get weird.

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For crypto specifically, that kind of uncertainty is a double-edged situation. A confirmed hike probably pushes prices lower in the short term.

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Market participants are on edge. Analysts are watching every data release, every Fed official's public comment, anything that might hint at the central bank's direction before…

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Goldman Sachs didn't move in isolation. The revision came as part of a wider recalibration across major financial institutions, all reassessing where the Fed is likely to land…

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See also: XRP Stagnates as 93% ETF Inflow Drop Signals CLARITY Act Anxiety

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