
The Fed’s “Risk Management” Cut – What It Means for Crypto
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The House View is your quick-hit on what moved markets – straight from the FalconX desk. Follow us on Spotify or Apple Podcasts.
Episode 5: The Fed’s “Risk Management” Cut – What It Means for Crypto
The Fed finally blinked. In a widely anticipated move, the U.S. central bank delivered a 25bp rate cut, but what caught markets off guard wasn’t the move itself – it was the messaging. A new phrase entered the Fed lexicon: “risk management.” But what exactly are they managing?
In Episode 5 of The House View, Colin Farrell (Senior Manager, Institutional Coverage) sits down with Matt Sheffield (Head of Spot Trading) to unpack the September FOMC decision, how traders are interpreting the Fed’s new tone, and what all of this means for crypto markets heading into Q4.
Key Topics Covered:
- The Fed’s Preemptive Pivot: A 25bp cut without clear data justification – is the labor market weaker than it looks?
- Dot Plot Drama: One member wanted +125bp hikes; another wanted a 50bp cut. Uncertainty rules.
- Crypto Implications: From ETH vols to altcoin flows, rate cuts are a liquidity green light – but not a rocket ship (yet).
- Retail Revival?: With the holidays approaching and cuts underway, the stage may be set for renewed retail interest.
- Vols & Flows: BTC vol crushed post-FOMC; ETH vols remain elevated – and digital asset treasuries (DATs) are driving activity.
Tune into Episode 5 now on Spotify or Apple to hear the full breakdown.
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