Market Bets on Three More Fed Rate Hikes by End-2027

This is a positioning story, not a policy one: the repricing happened without any fresh data or Fed communication, which suggests sentiment, not fundamentals, is doing the work. For crypto and RWA markets, the transmission channel is the cost of leverage and the discount rate applied to yield-bearing instruments, so a higher-for-longer path compresses the relative appeal of risk assets. The open question is whether this bet survives contact with the next actual data release, or unwinds as quickly as it built.