According to @MilkRoadDaily, the post flags a hypothetical surprise rate hike by Federal Reserve Chair Jerome Powell, drawing attention to policy shock risk for traders, source: https://x.com/MilkRoadDaily/status/1966860709721166040. During the 2022 tightening cycle, the Fed raised the target federal funds rate to 3.75%–4.00% by November 2, 2022, while BTC fell roughly 75% from its November 2021 peak to around November 2022 levels, underscoring how rapid hikes have coincided with risk-off moves in crypto, sources: https://www.federalreserve.gov/monetarypolicy/2022-11-02-fomcstatement.htm and https://finance.yahoo.com/quote/BTC-USD/history. Macro sensitivity also increased as crypto became more correlated with equities during periods of tightening and risk repricing, signaling that a policy surprise could pressure BTC and ETH via broader risk sentiment, source: https://www.imf.org/en/Blogs/Articles/2022/01/21/crypto-prices-move-more-in-sync-with-stocks-signaling-rising-risk-of-contagion. For positioning ahead of policy events, traders commonly monitor CME FedWatch probabilities and the US 2-year Treasury yield as real-time proxies for surprise risk that can influence crypto liquidity conditions, sources: https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html and https://home.treasury.gov/resource-center/data-chart-center/interest-rates/daily-treasury-yield-curve-rates.

According to Mihir (@RhythmicAnalyst), the ongoing conflict in the Middle East is fueling a significant surge in oil and gas prices, leading to heightened inflation concerns. Mihir emphasizes that rather than expecting a Federal Reserve rate cut, traders should prepare for the possibility of a rate hike if geopolitical tensions persist. This scenario typically results in tighter monetary policy, which has historically placed downward pressure on risk assets like cryptocurrencies such as BTC and ETH. Elevated energy prices contribute to sustained inflation, reducing the likelihood of Fed easing and potentially triggering further volatility across crypto markets. (Source: Mihir via Twitter, June 17, 2025)

According to Evan (@StockMKTNewz), the Atlanta Fed has raised its Q2 GDPNow forecast to 4.6%, up from the previous 3.8%. This upward revision signals stronger-than-expected US economic growth, which often leads to market speculation about future Federal Reserve rate decisions. For crypto traders, this robust GDP projection may increase the likelihood of sustained higher interest rates, potentially strengthening the US dollar and placing downward pressure on major cryptocurrencies like Bitcoin and Ethereum. Traders should monitor upcoming Fed statements and macroeconomic releases, as continued economic strength could drive volatility and shift trading ranges across digital assets (Source: @StockMKTNewz, June 2, 2025).