Bitcoin Leverage Nears $40 Billion Ahead of Key Fed Vote

Bitcoin's open interest has surged to approximately $37.63 billion as traders prepare for a critical Federal Reserve meeting, which is expected to result in a quarter-point interest rate cut. This anticipation is driven by recent economic indicators, including a weakening labor market and declining core inflation, which suggest to investors that a rate cut could stimulate risk assets such as cryptocurrency. The prediction market Myriad indicates a 92.6% chance of this rate cut occurring, reinforcing bullish market sentiment for Bitcoin. Recently, Bitcoin's price climbed to around $115,235, recovering from a previous low of $110,960 amidst improving trade relations between the US and China. Although the current open interest reflects significant trading activity, it remains below October's peak level of $47 billion, coinciding with Bitcoin's all-time high of $126,080. Analysts warn that while optimism persists, leverage-driven volatility poses risks to investors amidst these market dynamics.

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