Crypto: Bitcoin And Ethereum Stall Ahead Of Fed Turbulence
Bitcoin, Ethereum And the Coming Storm of Volatility
After a calm start to the week, the crypto market faces the risk of sharp volatility as several major U.S. economic events converge. Investors are now focused on Tuesday’s Nonfarm Payroll revisions, Wednesday’s Producer Price Index (PPI), and Thursday’s Consumer Price Index (CPI) reports. These indicators could shape the outcome of the Federal Reserve’s September 17 rate decision.
According to analysts, if inflation spikes unexpectedly, investors may be forced to rebalance risky assets, including Bitcoin and other digital tokens. On the other hand, positive signals from the labor market and inflation could strengthen expectations for additional Fed rate cuts after September.
VIX Futures: A “Powder Keg” For The Market
A unique feature this month is the expiry of VIX futures—Wall Street’s “fear gauge”—which coincides with the Fed’s rate announcement. According to Greg Magadini of Amberdata, this overlap could act as a “time bomb” for volatility, as existing hedges expire right when the Fed decision delivers a directional shock to markets.
Ethereum Holds A Stronger Position Than Bitcoin
Data from Coinalyze indicates that Ethereum continues to show stronger trading momentum compared to Bitcoin. Specifically, ETH’s open interest climbed by $438 million to $24.3 billion, while BTC’s open interest rose by around $450 million to $30.41 billion, though without a clear bias between buyers and sellers.
The increase in cumulative spot trading volume and the inflow of fresh capital has made Ethereum appear more resilient in the short term, even as the overall market remains pressured by macroeconomic uncertainty.
Conclusion
The crypto market is entering a “spring compression” phase, with multiple catalysts aligning at once: U.S. economic data, inflation, the Fed’s decision, and VIX futures expiry. Together, these factors could trigger major volatility in Bitcoin, Ethereum, and the broader market, ending the quiet start to the week.
Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.