Crypto Index Tracker: Crypto Markets Feeling the Hawkish Heat
- By Bilal Hafeez and Dalvir Mandara
- 3 min read
After the last FOMC meeting, markets thought we had reached a peak in Fed hawkishness. Crypto markets climbed onto this narrative and grinded higher, with bitcoin ending July up 23% from its mid-month low. But as we said then, this perception of the Fed is likely wrong – we see it hiking by another 175bps this year. Today’s nonfarm payrolls data only further pressures the Fed to hike, with job growth surging and recession fears cooling.
Now, crypto markets are coming to the stark realisation that the Fed is not finished. All our indices are in the red (except our Metaverse Index, which is up; Charts 1 and 2). This is the reverse of last week with our Bitcoin Index down most (-4.9%).
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