With the conclusion of last night's Federal Reserve FOMC meeting, the market's panic sentiment has dissipated. Powell's "hawkish pause" has been interpreted by the market as his last stubborn stance before leaving office, while funds are more focused on the regulatory easing that the "Warsh era" is expected to bring.
The market is beginning to re-evaluate the cash flow valuation (PE Ratio) of DeFi protocols. Aave (AAVE) and Curve (CRV) have surged closely behind, as funds bet that they will be the next protocols to initiate dividends.
Last night, Powell announced as expected that interest rates would remain unchanged, and during the press conference, he took a tough stance, claiming that "the likelihood of a rate cut in March is very low." However, the market completely ignored his hawkish remarks.
Wall Street traders are trading "The Warsh Call" (Warsh call options). The market generally believes that with Kevin Warsh about to take over, the current tightening policy will make a complete turnaround in May.
BTC
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