Pre-Fed Dour Mood Seen in BTC, ETH, Liquidity Squeeze Hits PENGU
By Omkar Godbole (All times ET unless indicated otherwise)
The crypto market is derisking ahead of today’s Fed rate decision. Everyone’s buzzing about the likelihood of another rate cut that will supposedly galvanize risk-taking in the economy and financial markets.
Here’s the twist: The central bank is expected to signal three rate cuts for 2025, not the four it projected in September, as well as revise growth and inflation forecasts higher. No surprise, then, that bitcoin and ether are trading nearly 2% lower, driving bigger losses in small-cap tokens. Among them, Pudgy Penguins’ PENGU token, which has slumped over 50% since Tuesday’s airdrop.
The front-end call premiums in both BTC and ETH have already taken a hit, signalling a more…
