[Increase in Stablecoin Inflows Ahead of Federal Reserve Rate Decision]
Ahead of tonight's Federal Reserve rate decision, stablecoin inflows have risen. In addition to the anticipated 25 basis point rate cut, the market is focused on whether the Fed will slow the reduction of its balance sheet, which could ease financial conditions and benefit risk assets. Trading activity has become subdued, centralized exchange liquidity has declined, and order book depth is only 40% of pre-liquidation levels.
Data from Wintermute shows that stablecoin supply has increased for the first time since September, indicating that macro tailwinds are driving capital inflows. Funding rates for major token perpetual futures have turned positive, while open interest for BTC and ETH has steadily grown. Analysts believe that macro tailwinds, cooling inflation, and dovish policies may support a fourth-quarter rally, as Bitcoin historically performs strongest in the fourth quarter.