Analysts told Coindesk earlier this week that the main cryptocurrencies led by Bitcoin would resume their slower routine after the cutting of the Wednesday’s Fed rate.
That is exactly what happened since the FED reduced rates at 25 basic points at 4% on Wednesday night. The Central Bank also hinted at a rapid decrease in the next 12 months.
Bitcoin The leading criptomoned for market value, exceeded $ 117,900, the highest level since August 17, which ended the lateral trend since Friday and resuming the slow recovery of the beginning of September that are shown about $ 107,200, as shown by Coindeesk’s data. Writing, cryptocurrency increased almost 1% 24 hours a day.
Ethereum’s Ether (Eth) The Token, the second largest cryptocurrency due to market value, increased 2.7%, but remained blocked within the four -week narrowing price range, or the contracting triangle, as Coindesk pointed out earlier this week.
Other specialties such as Dogecoin solarium and BNB (BNB) They rose more than 4%, while the cryptocurrency centered on XRP payments quoted almost 3% higher, seeking to accumulate upward impulse following a breakdown triangle rupture.
Sol Token programmable of Blockchain Solana briefly exceeded $ 245, almost testing the maximum weekend, since CME’s decision to offer sunshine options of October 13 increased hopes of greater institutional participation. These options will help institutions manage their exposure more effectively. The CME will also debut XRP options the same day.
Matt Mena, cryptographic research strategist in 21Shares, said the opening of the Fed to accelerate the rhythm of relieving is to create an asymmetric configuration for Bitcoin.
“The points [interest rate projections] He leaned more deceived, indicating that the Fed is open to accelerate the rhythm of relieving if the conditions demand it. That risk of reproduction is now in front and the center, creating an asymmetric configuration for Bitcoin. While today’s 25bps cut provided the spark, it is the implicit way in the points, rather than the cut itself, which can prepare the stage for Bitcoin to challenge the new maximums at the end of the year, “Mena said in an email to Coindesk.
He added that Bitcoin could establish a historical maximum above $ 124,000 by the end of October, with Ether exceeding the $ 5,000 psychological barrier.
The dollar resilience could be a potential wind against
However, the path to the new lifelong maximums may not be soft, since the dollar shows signs of life.
Despite the projections of Dovish feeding fees, the dollar index, which tracks the value of the Greenback against the main currencies, including the euro, has bounced to 97.30, quickly recovering from the initial fall below the minimum of July 1, 96.37.
Perhaps the Fed currency markets are already considered in the currency markets. After all, the DXY has fallen 10% this year largely in the back of the Fed. BTC rate reduction bets, also has recovered in 25% this year, reaching new maximums above $ 124,000 in August, with the support of the Dovish Fed expectations.
The dollar resilience probably reflects the emphasis of President Jerome Powell that rapid and successive tariffs are not guaranteed. He also stressed that quantitative hardening (General balance) It remains in force and inflation continues to rise. These observations decreased the optimism caused by the projections of the Dot Dovish plot.
A strong rebound in the DXY could lead to a financial adjustment, potentially weighing in BTC and other risk assets.
Tail risk price
Sophisticated market participants are stared at the risk of tail, according to the Crypto Blofin financial platform.
The risk of tail refers to low probability and high impact events, such as market accidents or important economic crises, which cause disproportionately large losses, which often occur in the “queues” of a probability distribution.
“As one of the most sensitive assets of interest rates, the recent increase in the risk of interest rate has led to a growing demand for tail protection, which leads to manufacturers and merchants in the market to incorporate a higher risk of interest rate in their prices. (Around 4DTE) Put propagation with 2,000 contracts (Clearly intended for tail protection)that is not seen often, “Blofin told Coindesk.
An spread put is a strategy designed to benefit from a decrease in the price of the underlying asset, in this case, BTC.
