Bitcoin Leverage Hits $37.6B on Fed Rate Cut Bets
Bitcoin leverage in derivatives markets surged to $37.63 billion in open interest as traders bet on a Federal Reserve rate cut to 4.00–4.25%. The buildup in leveraged positions propelled Bitcoin from around $107,600 to over $116,000. Market pricing on Myriad shows a 92.6% chance of a 25 bps cut. Bitget CEO Gracy Chen predicts Bitcoin could test $118,000–$120,000 by month-end if support holds above $112,000, though elevated leverage may add volatility. Traders should monitor open interest and leverage metrics closely, as high Bitcoin leverage can amplify short-term swings and impact long-term stability.
Bullish
The surge in Bitcoin leverage and open interest ahead of an almost certain Fed rate cut reflects strong bullish sentiment. Rising derivatives positions have already pushed Bitcoin’s price higher, and CEO projections point to further gains toward $118,000–$120,000 if key support holds. While increased leverage can heighten short-term volatility, the dominant trend is upward as traders lock in positions before the policy shift. This positive momentum and the high probability of a rate cut suggest a bullish impact on Bitcoin’s market trajectory.