On Polymarket and the upcoming Fed dot plot
Watching the Polymarket odds on the Fed's next move, and it's amusing how quickly sentiment shifts. One decent CPI print, and suddenly everyone's baking in cuts by Q3, while just last week the chatter was about 'higher for longer.' It's like watching a pendulum swing based on whichever economist got the most airtime that day.
I'm keeping an eye on the June dot plot. If we see a material shift towards fewer cuts than what's currently priced in, those Polymarket 'yes' contracts for early cuts are going to get interesting. Not touching them myself, but it's a good temperature check for broader market sentiment, especially for my $ETHUSD watches, which tend to react quite sensitively to macro liquidity shifts.
Totally agree. It's wild how reactive the market can be to a single data point. The 'higher for longer' crowd definitely went quiet for a minute there. I'm also curious to see the dot plot; that'll be the real tell.