Bitcoin – Is BTC waiting for FOMO as investors flee to safer assets?

Key Takeaways

Why is Bitcoin struggling to find a bottom?

Traders are holding back, waiting for $17 billion Bitcoin options volatility to settle, or stocks to overheat, leaving a lot of capital on the sidelines.

What’s the near-term outlook for BTC?

Bitcoin could see further retracement and elevated volatility, especially with macro pressures and the $17 billion options expiry looming.

Investor appetite is shifting, and Bitcoin [BTC] is feeling the pressure.

On the macro side, the U.S. stock market is ripping. All three major indices [$DJI, $NASDAQ, and $SPX] have hit fresh all-time highs, signaling money chasing legacy markets post-FOMC.

Meanwhile, the U.S. 10-year treasury yield slipped to a quarterly low of 4.01% in mid-September, hinting that money’s chasing safer bonds while risk-on bets like Bitcoin cool off. In short, BTC’s bid wall is weakening.

Source: Trading Economics

Despite the 25 bps rate cut, investor conviction in BTC hasn’t returned.

Meanwhile, stablecoin supply has exploded from $204 billion in January to $308 billion in September. That’s over $100 billion in dry powder still sitting on the sidelines, ready to rotate into BTC once risk-on flows return.

The question: When does the rotation hit? Is the market waiting on a cleaner entry, a deeper rate cut, overheated stocks, or the $17 billion BTC options expiry to clear before FOMO kicks back in?