Bonds Hint at Rebound: Crypto Daybook Americas
Bitcoin dropped below $90,000 amid risk-off sentiment, but rising bullish bets in U.S. Treasury options suggest a potential crypto rebound if yields fall.Summary
Risk-off sentiment deepened in Asian trading, causing Bitcoin (BTC) to briefly dip below $90,000 for the first time in seven months before stabilizing near $91,000, a 4.5% drop over 24 hours. Experts link BTC's monthly slide to fading expectations of a December Federal Reserve rate cut, as market probabilities shifted significantly after Fed Chair Powell's comments. However, a potential silver lining appears in the bond market: ING data shows increased open interest in bullish U.S. Treasury bond options, indicating traders anticipate weaker economic data will revive hopes for faster Fed cuts. This scenario—declining yields and a softer dollar—has historically favored crypto rebounds. The key uncertainty is when this repricing in Treasuries will translate into support for risk assets like Bitcoin. Meanwhile, the U.S. dollar index remains firm, and the VIX index is breaking out of a range, suggesting rising volatility that could amplify crypto volatility.
(Source：CoinDesk)