Analysts told Coindesk at the beginning of this week that the big cryptocurrencies led by Bitcoin will resume their slowdown in the drop in the Fed on Wednesday.
This is exactly what has happened since the reduction in Fed rates from 25 basic points to 4% Wednesday evening. The central bank also referred rapidly over the next 12 months.
Bitcoin The main cryptocurrency by market value exceeded $ 117,900, the highest level since August 17, ending the lateral trend since Friday and taking over the slow recovery at the beginning of September almost $ 107,200, according to Coindesk data. During the editorial staff, cryptocurrency increased by almost 1% on a 24-hour basis.
Etherum ether (Eth) Token, the second largest cryptocurrency by market value, increased by 2.7%, but remained locked in the price for four weeks, or the contractual triangle, as Coindesk noted at the beginning of this week.
Other majors such as Dogecoin Solara and bnb (BNB) increased by more than 4% while the XRP cryptocurrency focused on payments exchanged almost 3% higher, seeking to increase the momentum following an escape from Haussier descending triangle.
The Blockchain Solana Programmable Blockchain token briefly exceeded $ 245, testing almost the weekend, because CME’s decision to offer soil options from October 13 increased hopes for increased institutional participation. These options will help institutions manage their exhibition more effectively. The CME will also start XRP options on the same day.
Matt Mena, Crypto Research Stratege at 21Shares, said that the opening of the Fed to accelerate the pace of relaxation created an asymmetrical configuration for Bitcoin.
“The points [interest rate projections] Takes more dominant, signaling the Fed is open to accelerate the pace of relaxation if the conditions require it. This risk of repair is now at the front and center – creating an asymmetrical configuration for Bitcoin. Although the cup of 25 BPS today has provided the spark, this is the path involved in points – more than the cut itself – which could prepare the ground for Bitcoin to defy new peaks in the end of the year, “said in an email at Coindesk.
He added that Bitcoin could put a level of all time above $ 124,000 by the end of October, Ether exceeding the psychological barrier of $ 5,000.
Dollar resilience could be a potential front wind
However, the path to new heights for lifetime may not be fluid, because the dollar shows signs of life.
Despite the Fed Dovish rate projections, the dollar index, which follows the value of the greenback compared to the main currencies, including the euro, rebounded at 97.30, quickly recovering from the initial decline below the lowest July 1 of 96.37.
Perhaps the domination of the Fed is already taken into account by the exchange markets. After all, the Dxy fell 10% this year on the back of bets to lower Fed rates. The BTC also joined 25% this year, reaching new heights higher than $ 124,000 in August, supported by expectations of the Fed Dovish.
The resilience of the dollar probably reflects the accent made by President Jerome Powell that the rapid and successive rate reductions are not guaranteed. He also pointed out that quantitative tightening (balance sheet) Remains in force and inflation continues to operate. These remarks attenuated optimism triggered by the projections of Dovish point layout.
A strong rebound in the DXY could lead to a financial tightening, potentially weighing on the BTC and other risk assets.
Tail risk price
Sophisticated market players are tail risk prices, according to the Blofin cryptographic financial platform.
The risk of tail refers to low -probability and high impact events, such as market accidents or major economic crises, which cause disproportionate losses, often occurring in the “tails” of a distribution of probability.
“As one of the assets most sensitive to interest rates, the recent increase in interest rate risk has led to increasing demand for tail protection, which encourages market manufacturers and traders to integrate more risk rate risk in their prices. In the meantime, data on block exchanges also include a short-day (about 4dte) Place the propagation order with 2,000 contracts (clearly intended for the protection of the tail)Which is not often seen, “said Blofin Coindesk.
Put propagation is a strategy designed to benefit from a drop in the price of the underlying assets, in this case, BTC.
