Twitter🔥 66 trending score

What matters now isn’t the rate cut — it’s the reaction function. Markets have fully priced a 25...

By SoSoValue

Posted December 10, 2025

What matters now isn’t the rate cut — it’s the reaction function.

Markets have fully priced a 25...

About the Creator

SoSoValue is a platform focused on tracking and analyzing the transmission of macroeconomic trends into the cryptocurrency market. They provide real-time data and insights, aiming to help investors understand the relationship between traditional finance and digital assets. Their content is typically data-driven and geared towards informed decision-making in the crypto space.

What's This About?

This tweet discusses the importance of the Federal Reserve's 'reaction function' – how they will respond to economic conditions – rather than just the expected interest rate cut. It highlights three key factors influencing the next move: Powell's communication style, the 'dot plot' (interest rate projections), and the potential introduction of liquidity tools. The tweet also touches on the evolving structure of the crypto market, noting regulatory developments in Real World Assets (RWA), low volatility in Bitcoin/Ethereum, and shifts in investment flows anticipating a macro change.

🔥Why It's Trending

This tweet is likely trending because it addresses timely and crucial issues surrounding monetary policy and its impact on both traditional finance and the crypto market. The Federal Reserve's decisions have broad implications, and the tweet's focus on future guidance and the evolving crypto landscape makes it highly relevant to investors and market observers right now.

💡Fun Facts

1The 'dot plot' is a chart published by the Federal Reserve that summarizes individual members' assessments of appropriate monetary policy.
2A 'hawkish cut' refers to a rate cut accompanied by signals that further cuts are unlikely and that the Fed may even raise rates later.
3Real World Assets (RWA) in crypto refers to tokenizing physical assets like real estate, commodities, or bonds on a blockchain.
4The CFTC collateral pilot program allows certain regulated entities to use crypto as collateral for derivatives trading.
5Liquidity tools like RMP (likely referring to a repurchase agreement facility) are used by central banks to manage short-term funding pressures in the financial system.