Analysis: Stablecoin Inflows Increase Ahead of Interest Rate Decision, Macro Tailwinds Set Supportive Foundation for Upside
BlockBeats News, October 29th: Ahead of the Federal Reserve's interest rate decision tonight, the inflow of stablecoins is on the rise. Apart from the almost certain 25 basis point rate cut, traders are also watching for signs that the Fed may slow down its balance sheet reduction, which would further loosen the financial environment and could potentially be a boon for risk assets. Trading activity is currently trending flat, with liquidity on centralized exchanges significantly reduced, with order book depth at only 40% of pre-settlement levels at 1011.
According to Wintermute data, stablecoin supply has risen again for the first time since September, indicating that the "macro tailwind is transforming into new inflows of funds." At the same time, the funding rates for most major tokens' perpetual futures contracts have now turned positive again, while BTC and ETH's open interest is "rebuilding steadily." Although Uptober had a slight false start, with macro tailwinds, cooling inflation, stable geopolitical tensions, and a dovish Fed laying the foundation for further upside in the remainder of the year. Historical data shows that the fourth quarter has always been Bitcoin's strongest period. The majority of analysts hold the view that a breakthrough seems imminent.
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