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A dovish signal ahead of the Federal Reserve’s rate decision could support a strong fourth quarter for cryptocurrencies this year, according to Crypto Briefing.
The outlet said a rate hike is already widely expected and market attention is focused on the Fed’s messaging. It added that if Chairman Kevin Warsh delivers a dovish signal, the crypto market could strengthen in the fourth quarter, while hawkish remarks could send Bitcoin back to test the $63,000 low.
Crypto Briefing said fund flows already show a wait-and-see stance ahead of the Fed announcement. Net buying preference for stablecoins rose to 28%, while buying strength for Bitcoin and Ethereum fell to 3% and 9%, respectively. Hedge funds are still net buyers, but systematic and quantitative investment strategies have tilted heavily toward selling. Overall, the outlet said investors appear to be cutting exposure to risk assets while securing liquidity that can be redeployed at any time.
It also said that after the Fed announcement, the key point to watch will be whether capital parked in stablecoins returns to exchanges and the broader market, rather than the rate decision itself.