Conflicts of Interest: Bitcoin Traders in the Grip of the Latest US Rate Cut

The Federal Reserve's recent interest rate decision is causing a tense week among Bitcoin traders. Following the first interest rate cut by the U.S. Federal Reserve in nine months, investors are navigating the effects. According to Bitbank analyst Yuya Hasegawa, the bullish sentiment seen after the FOMC meeting could bring Bitcoin prices closer to the $120,000 mark. In the coming week, remarks from Fed Chair Jerome Powell and Vice Chair Michelle W. Bowman are eagerly awaited. Although the Federal Open Markets Committee (FOMC) is contemplating the possibility of two more rate cuts by 2025, Powell's commitment to this remains absent. The market is closely monitoring every wording from the Fed camp, while a survey on the prediction market platform Myriad shows that a majority of 72% of users expect another rate move of 25 basis points in October. On the CME FedWatch Tool, 92% of traders anticipate another cut. Hasegawa highlights that despite the uncertainties, a strong dollar and weak bonds remain worrisome, although this is seen as a short-term reaction. The market strategists at Deutsche Bank are keenly watching Powell's speech on Tuesday and the new consumer spending data. Currently, Bitcoin traders seem to be focusing on premium sales rather than waiting for a dramatic price surge. Jake Ostrovskis from Wintermute observes that sales of call spreads between $125,000 and $150,000 are dominating. This indicates a rather cautious market outlook.