Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
- BTC-USD
Sept 14 (Reuters) – <a href="https://xpertsstudio.com/bitcoin-etfs-just-lost-463-million-as-the-fed-puts-btc-at-risk-of-losing-75000/” title=”Bitcoin ETFs just lost $463 million as the Fed puts BTC at risk of losing $75,000″>Bitcoin bulls are back after months of gloom, but a Federal Reserve rate decision this week will test that optimism, even as a key Senate vote on crypto legislation could provide a surprise tailwind.
After languishing for months at two-year lows of around $60,000, the world’s largest cryptocurrency in late August staged a rebound past $70,000 as surging Treasury yields briefly retreated and broader sentiment improved. The rally marked a sharp turnaround for bitcoin, which had slumped roughly 50% from its October 2025 peak of above $126,000.
Although traders are assigning almost no chance of bitcoin rescaling that peak, the bitcoin options market has flipped bullish for the first time in 12 months, according to data from options platform Derive.xyz, with many traders betting bitcoin could hit $80,000 or higher by December.
At first glance, that optimism seems misguided: tensions in the Middle East remain high, the odds of the U.S. Senate passing a key crypto bill that could boost adoption have dimmed, and inflation has remained elevated, raising expectations of a Fed rate hike which usually sucks liquidity out of such risk assets.
Despite those headwinds, many investors believe bitcoin, a notoriously volatile asset, has hit its lowest ebb. With traders assigning an 85% likelihood of a rate hike on Wednesday following hot inflation data, and with long-end bond yields nearing 5%, creating more competition for capital, the question now is whether bitcoin can sustain momentum, said analysts.
“BTC was in oversold territory for some time,” said Matthew Dibb, chief operating officer of Singapore-based crypto investment manager Stack Funds. “Short-term traders are looking towards inflation figures and rate rises as short term threats.”
The 25-delta skew, which compares demand for bullish call options against protective put options, turned positive on August 20, said Sean Dawson, head of research at Derive.xyz. That implies there is a premium to buying upside calls, he said.
“That is a bit bullish,” he added. Dawson attributed the improved mood to a general rotation back into crypto after the blockbuster SpaceX IPO sucked capital out of the market, while Korean equities, also attractive to speculative investors, have cooled.
Open interest for the December 25 expiry is clustered at the $80,000 strike, with about $710 million in notional value, and at $100,000, with roughly $530 million,
Source: ca.finance.yahoo.com