Fed rate cut may pump stocks but Bitcoin options call sub-$100K in January

Bitcoin derivatives markets show increasing skepticism about sustained bullish momentum, even after the US Federal Reserve decided to cap interest rates at 3.75% and announced a $40 billion program to purchase short-dated government bonds, injecting liquidity back into the system. This expansionary policy is generally expected to benefit stocks by lowering the cost of capital, but Bitcoin's reaction is less predictable, as investors may not view it as a reliable store of value when rotating out of safe government bonds. Data from options pricing indicates a 70% probability that Bitcoin will remain at or below $100,000 by January 30, suggesting that major players like whales and market makers remain highly cautious about a durable breakout above that level, despite the favorable monetary policy shift.

(Source：Cointelegraph)