Geopolitical risks added another layer of caution. President Trump threatened “strong military action” if diplomatic talks with Iran fail, and U.S. oil prices traded near $84 per barrel. The combination of a tense Fed meeting, heavy economic data later in the week—including second-quarter GDP and the PCE inflation report on Thursday—and a wave of mega-cap tech earnings created what one source described as a gauntlet for portfolio managers.
What to Watch
For crypto, the immediate question is whether the current selloff is a routine pre-Fed deleveraging or the start of a deeper correction. Bitcoin’s correlation with equities tends to strengthen when macro and rate stress dominate, and the next 48 hours will test whether that relationship holds or breaks. The answer may depend less on the rate decision itself than on the tone Chair Warsh strikes and whether the data later in the week validates the market’s hawkish repricing.
Sources: Source 1 · Source 2 · Source 3 · Source 4 · Source 5 · Source 6
