According to @ambergroup_io, shifting global rate expectations ripple through Asia’s crypto funding markets faster than traditional assets, with funding spreads and borrow costs moving in lockstep with global rate guidance (source: @ambergroup_io). @ambergroup_io states that many desks are re-evaluating treasury strategies and diversifying liquidity across CeFi and DeFi venues to isolate volatility and optimize opportunities as macro cycles accelerate (source: @ambergroup_io). @ambergroup_io notes the Fed has signaled a slower pace after its third rate cut this year, and the firm is adapting its funding and risk management strategies to navigate the current rate environment (source: @ambergroup_io). For traders, @ambergroup_io highlights that policy guidance changes can swiftly reprice crypto funding conditions in Asia, impacting borrowing costs and spread dynamics across venues, warranting close monitoring of rate signals and cross-venue liquidity (source: @ambergroup_io).

According to the source, Federal Reserve Chair Jerome Powell is holding a live FOMC press conference where the Chair presents the policy decision and answers questions from the media. Source: Board of Governors of the Federal Reserve System. The Fed states that press conferences communicate the economic outlook and policy guidance used by markets to update rate expectations and financial conditions. Source: Board of Governors of the Federal Reserve System. Empirical research documents elevated asset returns and volatility around FOMC announcement windows, highlighting event risk for traders during these communications. Source: Federal Reserve Bank of New York (Lucca and Moench, The Pre-FOMC Announcement Drift). Crypto markets have become more correlated with equities and macro policy signals since 2020, implying that FOMC communications can influence short-term BTC and ETH price swings. Source: International Monetary Fund. Traders should focus on any guidance about the policy rate path, balance sheet runoff, and references to the Summary of Economic Projections, as these can move USD liquidity, yields, and crypto risk appetite. Source: Board of Governors of the Federal Reserve System.