Bitcoin Volatility Surges Amid US Federal Reserve Policy Shift
- The US Federal Reserve cut interest rates by 25 basis points and announced the end of quantitative tightening by December.
- Bitcoin spot trading volume surpassed $300 billion in October, with Binance accounting for $174 billion.
- October marked the second-highest month for Bitcoin spot volume this year, indicating a shift towards direct exposure over leveraged speculation.
- A historic liquidation event on October 10th led traders to favor direct Bitcoin accumulation over high-leverage positions.
- Bitcoin is trading near $110,800 after being rejected at the $117,500 resistance level, testing support between $110,000 and $111,000.
The Federal Reserve’s recent policy shift has increased market liquidity expectations, impacting risk assets like Bitcoin. The surge in spot trading activity suggests a growing preference for direct Bitcoin exposure among traders and institutions.
With October’s spot volume reaching significant levels and traders moving away from leverage, Bitcoin’s market structure appears healthier and more stable than before. ( Source)
