Fed Policy Split Drives Derivatives Activity as Crypto Teeters on Brink of Easing
Bitcoin remained calm over the weekend, masking heightened activity in derivatives markets where investors are positioning for a possible Federal Reserve rate reduction and increased volatility in oil and stock futures. The cryptocurrency sector is on alert for a potential change in monetary policy,
with Coinbase Institutional suggesting
that the likelihood of a December rate cut is “not accurately reflected” despite ongoing inflation worries.
The minutes from the Fed’s October meeting, which revealed differing opinions among officials,
have prompted traders to turn to the CME Group’s FedWatch tool
to estimate a 69.7% probability of a 25-basis-point rate reduction in December. This…
