“Dovish Fed Favors New All-Time Highs in Major Tokens, But The Dollar Resilience May Prove Costly.”, – WRITE: www.coindesk.com
That’s exactly what has had a hapned since the fed cut rates by 25 Basis Points to 4% Late Wednesday. The Central Bank ALSO HINTED RAPID EASING IN THE NEXT 12 MONHS.
Bitcoin BTC$ 117.210.37The Leading Cryptocurrency by Market Value, Topped $ 117.900, The Highest Level Since Aug. 17, ending the SideWays Trend Since Friday and Resuming the Slow Recovery from Early September Lows Near $ 107.200, Coindesk Data Show. As of Writing, The Cryptocurrency Was Up Nearly 1% on A 24-HOUR BASIS.
Ethereum’s Ether (ETH) Token, The Second-Largest Cryptocurrency by Market Value, Was Up 2.7%, But Remainned Loked Within The Four-Week-Long Narrowing Price Range, Or. Coindesk Early this Week.
Other Majors Such As Dogecoin Doge$ 0.2795Solana SOL$ 245.09 and bnb (bnb) Were up Over 4% while the Payments-Focused Cryptocurrency Xrp Traded Nearly 3% Higher, Looking to Build Upside Momentum in The Wake of A Bullish Descend
Programsmable Blockchain Solna’s Sol Token Briefly Topped $ 245, Almost Testing The Weekend High, AS CME’S DECISION TO OFFER SOL OPTION FROM OCT. 13 Raceded HOPES OF INCREASED INSTITUATIONAL PARTICIPATION. TheSE Options Will Help Institutions Manage Their Exposure More Effectvely. The CME IS ALSO GOING to DEBUT XRP Options on the Same Day.
Matt Mena, Crypto Research Strategist at 21shares, Said that Fed’s Openness to Accelerate the Pace of EASING IS Creating An Asymmetric Setup for Bitcoin.
“The Dots [interest rate projections] Leaned More Dovish, Signaling The Fed Is Open to Accelerating the Pace of EASING IF CONDITIONS DEMAND IT. That repring risk is now Front and Center – Creating An Asymmetric Setup for Bitcoin. While Today’s 25bps Cut Provides The Spark, It Is The Path Implied by the Dots – More Thank Itlen The Stage for Bitcoin to Challenge NEW HIGHS INTO YEAR -ENTA, ”
He Addted that Bitcoin Could Set An All-Time High Above $ 124,000 by the End of October, with Ether Topping The $ 5,000 Psychological Barrier.
Dollar Resilience Could Be A Potential HeadwindThe Path to New Lifetime Highs, However, May Not Be Smooth, As The Dollar Is Showing Signs of Life.
Despite the dovish fed rate projections, the dollar index, which tracks the Greenback’s Value Against Majoor Currencies, Including the European, Has Bounced to 97.30 of 96.37.
Perhaps the Fed’s Dovishness is Already Factored in the Foreign Exchange Markets. After all, the dxy have dropped 10% this year largely on the back of fed raate cuts. BTC, Too, Has Rallied by 25% This Year, Hitting New Highs Above $ 124,000 in August, Supported by Dovish Fed Expectations.
Dollar Index’s (Dxy) Daily Chart. (TradingView/Coindesk)
The Dollar’s Resiliency Likely Reflects Chairman Jerome Powell’s Emphasis that Rapid, Successive Rate Cuts Are Not Guaranteed. He Also Highlightned that Quantitative Tightling (Balance Sheet Runoff) Remains in Effect and Inflation Continues to Run High. These Remarks Dampned the Optimism Sparked by the Dovish Dot Plot Projects.
A Strong Bounnce in the Dxy Could Lead to Financial Tightling, Potentilly Weighting On BTC and Other Risk Assets.
Tail Risk PrtingSophisticated Market Participants are pricing tail Risk, accounting to Crypto Financial Platform Blofin.
Tail Risk Refers to Low-Probability, High-IMPACT EVENTS, SUCH AS Market Crashes or Majoor Economic Crises, That Cause Disproportiona Large Losses Distribution.
“As One of the MOST INTEREST RATE-SENSITIVE Assets, The Recent Interest in Interest Rate Risk Has Led To A Growing Demand for Tail Protection, Prompting Market Makers and Risk Interest to Interest. Meanwhile, Block Trades Data Also Includes a Short-Dated (About 4dte) Put Spread Order With 2,000 Contragraphs (Clearly Intended For Tail Protection), WHICH IS NOT OTENTETETETENEEN, ”
A put spread is a strategy designed to profit from a decline in the price of the underlying asset, in this casse, btc.
Staking Into Bittensor’s Subnets Offers One of Several Emerging Routes for Retail Investors to Gain Exposure to Decentralized Ai’s Early Days Nvidia.
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- Bitcoin Remains Stable Post-Fed Rate Cut, While Ethereum Sees Gains Amid Expectations of Further Cuts.
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