USD: Fed Dot Plot risks support – ING

💡 DMK Insight

A hawkish Fed Dot Plot could strengthen the Dollar, impacting crypto and forex markets. With SOL at $91.87 and DOT at $1.60, traders should be wary of how a stronger Dollar might pressure these assets. If the Fed signals fewer rate cuts than expected, we could see a shift in risk sentiment, leading to potential sell-offs in crypto. Historically, a stronger Dollar tends to correlate with weaker crypto prices, as investors often flee to safety. Keep an eye on the Dollar Index for immediate reactions, as a sustained rise could push SOL and DOT lower. Watch for key support levels around $90 for SOL and $1.50 for DOT; breaks below these could trigger further selling pressure. The real story is how quickly traders adjust their positions based on Fed signals, so stay alert for any shifts in sentiment as the next Fed meeting approaches.