Increased Stablecoin Inflows Ahead of Fed Decision: Americas Crypto Market Update

By Francisco Rodrigues (all times are in Eastern Time unless specified otherwise) The price of Bitcoin, currently at $85,254.67, has been fluctuating around $113,000 after experiencing a 1.4% decrease over the past 24 hours. Meanwhile, the broader cryptocurrency market, as measured by the CoinDesk 20 index, has seen a 2% decline. These downturns occur as investors shift their focus to stablecoins in anticipation of the Federal Reserve's upcoming policy decision. A 25 basis point reduction in interest rates is almost certain, with the CME FedWatch tool indicating a 99.9% probability and Polymarket traders estimating the odds at 98.1%. Investors are also waiting for signs that the Fed will slow down its balance sheet reduction, which could further ease financial conditions and potentially benefit risk assets. Trading activity has decreased, with liquidity on centralized exchanges dropping significantly. Order book depth has fallen to just 40% of pre-liquidation levels, according to Foresight Ventures, as investors move into stablecoins. OKX Singapore CEO Gracie Lin told CoinDesk, 'Traders are shifting their investments to USD stablecoins and concentrating liquidity in deeper order books.' Wintermute notes that stablecoin supply is increasing again for the first time since September, indicating that 'macro tailwinds are starting to translate into new inflows.' Similarly, perpetual futures funding rates have turned positive for most major tokens, and open interest for BTC and ETH is 'rebuilding at a moderate pace.' Wintermute OTC desk strategist Jasper De Maere wrote, 'Although October had a slow start, macro tailwinds, decreasing inflation, stabilizing geopolitical tensions, and a dovish Fed are setting the stage for a supportive remainder of the year, which has historically been the strongest period for bitcoin.' The current positioning and macro tailwinds suggest an impending breakout, a view shared by various analysts. However, the meeting between President Trump and Chinese President Xi Jinping later this week could increase uncertainty, so it's essential to stay alert. Key Events to Watch For a more comprehensive list of this week's events, see CoinDesk's 'Crypto Week Ahead'. Upcoming Token Events For a more comprehensive list of this week's events, see CoinDesk's 'Crypto Week Ahead'. Conferences and Meetups For a more comprehensive list of this week's events, see CoinDesk's 'Crypto Week Ahead'. Token Talk By Oliver Knight Derivatives Positioning Market Trends Bitcoin Statistics Technical Analysis Crypto Equities Crypto Treasury Companies ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors Overnight Recap