Leveraged bets on FOMC meeting ‘guaranteed recipe to lose money’ — Trader
A crypto trader warns not to trade on the initial Fed interest rate decision alone, as it is the speech from Fed chair Jerome Powell that typically moves Bitcoin’s price.
A crypto trader warns that going heavy on leverage before the monthly United States interest rate decision is a surefire way to lose money in crypto trading.
After the Federal Reserve’s statement confirmed the US central bank intends to leave interest rates unchanged in its target range between 4.25% to 4.5%, Bitcoin’s price barely moved, as the market had already widely expected no change in the interest rate.
However, after Fed chair Jerome Powell said the probability of a recession is “not high,” despite independent economists raising the odds of one, the overall crypto market saw an upswing, leaving traders betting on the downside caught off guard.
