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Bitcoin Traders Brace for Fed Hike, but a Surprise Hold Could Pose Bigger Risk
Talos said traders are showing a 28% net buying tilt toward stablecoins as bitcoin stays rangebound and volatility falls to a one-month low.
- Bitcoin traders are preparing for the Federal Reserve rate hike on Wednesday, focusing on Fed Chair Kevin Warsh's upcoming comments rather than the widely expected interest rate increase.
- Markets have priced in a 92.5% probability of a rate hike, driven by strong employment figures and persistent inflation ending a three-year period of stable rates.
- Research analyst Cooper Duschang at Talos notes investors are shifting toward liquidity with a 28% net buying tilt toward stablecoins, while Bitcoin buying conviction has dropped to 3% from 10%.
- K33 Research data shows open interest in crypto futures remains below yearly averages, suggesting little leverage exists to fuel a routine selloff into the hike.
- Energy prices, with crude rising more than 20% over the past five days, could complicate the Fed's inflation-fighting efforts, according to Mark Connors, chief investment officer at Risk Dimensions.
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18 Articles
18 Articles
Aftenposten+2 Reposted by 2 other sources
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Bitcoin Traders Brace for Fed Hike as Surprise Hold Raises Risk
Bitcoin traders heading into the Federal Reserve's September policy decision have positioned for a rate hike as their base case, yet the asymmetric risk may lie elsewhere: an unexpected hold could force a faster and more disorderly repricing than a hike that markets have already absorbed into positioning.Read more...
Coverage Details
Total News Sources18
Leaning Left0Leaning Right2Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
C 60%
R 40%
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