Bitcoin Crash Landing, Tentative Turnaround for S&P 500

After the Black Monday type price action, equities are staging a modest turnaround Tuesday, however, markets are likely to be tentative with the Fed just around the corner.

What’s more, markets are near fully priced in for a 75bps Fed rate hike this week, which had been sparked by WSJ reports late in the US session..

in which the Fed Watcher stated that “a string of troubling inflation reports in recent days is likely to lead Federal Reserve officials to consider surprising markets with a larger-than-expected 0.75-percentage-point interest rate increase”.

In turn, several banks, including Goldman Sachs & JPM now see a 75bps rate hike this week.

That being said, what was perhaps the most interesting market reaction had been equities, which initially rose on the back of the report.

Perhaps a preview to how equities would react in such a scenario. Now while equities quickly retraced the initial upside..

A 75 bps rate hike could prompt a bid in equities on the back of markets regaining trust in the Fed’s credibility in combating inflation.

Once again, cryptocurrencies prove it is a high-beta risky asset in light of the recent market turmoil.

The cryptocurrency broke 21k overnight, which has significance for the most correlated crypto stock, Microstrategy, following comments made by the company’s CFO last month.