This week, there were relatively few events in the cryptocurrency field, while many countries released the minutes of their monetary policy meetings, which focused on changes in the Federal Reserve’s expectations for whether to cut interest rates. Current data shows that Bitcoin and the U.S. stock market appear to be ahead of the Federal Reserve’s decision to cut interest rates. With correlations at their highest levels in nearly two months, investors are generally bullish on an early rate cut. This shows that the market is very sensitive to changes in monetary policy, especially the impact on the cryptocurrency market.
In the field of cryptocurrency, the current main focus is on the movement of spot Bitcoin ETF capital flows. This event has become the focus of market attention, replacing other capital flow indicators. The strong spot market has driven the entire market sentiment, especially the recent significant rebound in major term IV (implied volatility), and market expectations for increased volatility. This may mean that market participants have increased uncertainty about the future and need to make trading decisions more cautiously.
In terms of the cryptocurrency interest rate market, as the market gradually returns to calm and leverage levels continue to rise, the interest rate market has also rebounded from lows and some high interest rate orders have begun to appear. This shows that market participants have increased their risk tolerance and are willing to seek higher interest rate returns amid increased market volatility. However, investors still need to be aware of the risks that may arise from market volatility and remain cautious.
