In brief
- Bitcoin’s open interest nears $40B as traders price in a likely Fed rate cut.
- Users of prediction market Myriad hint at a 92.6% chance of a quarter-point cut this week.
- Experts warn that leverage-driven volatility is a risk, despite a bullish outlook.
Bitcoin traders are building leveraged positions across the crypto derivatives market ahead of a pivotal Federal Reserve meeting this week, as markets anticipate further cuts this year.
The U.S. Federal Reserve’s interest rate decision on Wednesday has become a focal point for investors, who are widely expecting a quarter-point cut that could bolster appetite for risk assets, including crypto.
The sentiment stems from a confluence of recent economic developments, including worsening labor market as seen in July and August reports and a decline in core inflation, both of which prompted the central bank’s initial cut last month.
The ongoing U.S. government shutdown has since created a data vacuum, limiting the Fed’s visibility into the economy. Still, Fed Chair Jerome Powell’
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Author: Akash Girimath
