In the next few days, the world expects the federal reserve to announce a hike in interest rates of 0.25-0.50%. People expect this will cause a big dip in BTC price, and increase BTC dominance in the market. Risk-on vs. Risk-off investment thesis explaine

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TL;DR - BTC could see a massive drop the next few days. If it does, I'm ready to buy in, and I wouldn't be surprised to see many new players entering the space as well.

I'm not a magician, I don't have a magic wand, I'm not a prophet, but what happens is in times like these the market goes from risk-open to risk-averse. Let's stop and imagine what that means from a practical perspective. I only learned what "risk-on" vs. "risk-off" means these past few months and it seems to work like this...

What does Risk-on mean?
When you are "risk-on", it sounds like a gambling term if you step back and take a look at the situation. What does that mean? It means you have lots of dollars to play with, the economic times encourage speculative spending (like immediately after a round of quantitative easing) with things like new-ish stocks of companies that are trying to do something revolutionary but might only be a brand new company to a space where others dominate. It might seem like common sense now, but if you were a low-level millionaire investor in 2009 (let's say you had 3 million USD of cash and a grand total of 10 million USD of assets) and you were invited by Elon Musk to attend a pre-IPO meeting to invest in his company, which at the time only had the Tesla Roadster, which could be driven for 1 hour before running out of electricity, you might be willing to RISK an investment of a few hundred thousand USD for some early-round stock in his company since it's, comparatively speaking, only a few small percentage points of your overall net-worth. Make sense now? good.

What does Risk-off mean?
Risk-off is just what it sounds like. You don't want to take risk and gamble with your money or investments, so you find a time to multiply the number of dollars that you have or are worth in a time when there is no excess of money being printed. Simultaneously, the value of the USD may also be increasing (which is happening now as I type this), which incentivizes you to accumulate more dollars. What's the only way to do this from a traditional investors' perspective? High-yield savings accounts and government bonds. Right now if you google search 5 year treasury yield or 30 year treasury yield, you'll see that the amount of profit you can generate from those is reaching the same levels it was at in 2018 - before the pandemic hit.

The inbound Federal Reserve announcement:
No one has a crystal ball and no one can tell you what the results of what the Fed will say in a couple of days. There's just a strong consensus among all investment experts that there will be an announcement that will strengthen the USD, and thus breed a Risk-off environment for the short term (let's say the next few months, maybe even the rest of 2022, I have no clue how long that will last). I think everyone is looking at the Federal Reserve and just thinking, "We already know what you're gonna say, so just say it so that it's on the record and we see the market make the appropriate decisions."

The dip people are expecting:
Again I am not a financial advisor. I can't tell you want to do with your money and I hope you're making smart decisions with your money. I cannot tell you how low bitcoin will go. I can only tell you that this will also affect bitcoin dominance. Make sure you have dry powder. And don't do anything risky.

Hope you guys learned something new today.

EDIT: I feel like an idiot. Lots of people here are saying that this is already "priced in" as per previous comments by Jerome Powell. I feel like my thesis just barely holds any weight because, as I said above, we are waiting for the "We already know what you're gonna say, so just say it..." as a formality. I feel like there might be some contrarian investors that are betting / investing a small amount in the opposite direction, because if there is a 1% chance that they are right, then they are going to make bank.