Cryptocurrency markets advanced Monday ahead of the Federal Reserve's upcoming rate decision, with bitcoin and ether leading the gains.
What he
:
BTC climbed to $115,200 and ETH to $4,160 amid expectations of a Fed rate cut on Wednesday.
Bitcoin's 30-day implied volatility fell to 44%, reflecting reduced market anxiety, while options data indicates a neutral to bearish trend on longer-term contracts.
While older tokens like ZEC, BCH, and DASH saw double-digit gains, newer coins like Plasma (XPL) and Aster (ASTER) fell as enthusiasm and trading volumes declined.
Cryptocurrency markets saw a much-needed rebound on Monday, with bitcoin
BTC
$
114,857.05
reaching $115,200 while ether
ETH
$
4,198.26
was trading at $4,160.
The increase can be attributed to anticipation around the Federal Reserve's meeting on Wednesday, where an interest rate cut is
expected.
>><>>Positioning on derivative products<><><>
The BVIV index, which measures BTC's 30-day implied volatility, fell at an annualized rate of 44%, nearly reversing the October 10 peak, a sign of easing market stress.
The bias toward BTC put options listed on Deribit has weakened across all maturities. However, longer-dated risk reversals remain slightly neutral to bearish. The same is true for ETH, although in the short term, the bias toward ETH puts is still slightly higher than that of BTC.
Last week, traders continued to sell bullish calls on the CME to collect premiums and generate yield on their long BTC positions.
Open interest in futures contracts for most cryptocurrencies, with the exception of XRP, HYPE, and HBAR, has increased over the past 24 hours, indicating capital flows in response to rising prices.
Although Bitcoin prices have surpassed their October 21 peak, total open interest in USDT- and USD-denominated perpetual futures contracts on major platforms remains below the levels seen on October 21. This divergence suggests that leveraged traders' participatio
n in the recent BTC rally has been limited.
