Bitfinex Report: The Federal Reserve may cut interest rates by 25 basis points, Bitcoin faces volatility risks

ChainCatcher news, Bitfinex Alpha stated in its latest report that Bitcoin has strongly rebounded, surging over 15% from a recent low of $52,756, thanks to a significant increase in Bitcoin ETF inflows.

In the past week, BTC ETFs recorded a net inflow of $403.9 million, reversing a long-term outflow of funds, indicating a renewed confidence among investors in the asset. This rebound was primarily driven by strong buying in the spot market. In contrast, the volatility in the futures and perpetual contract markets has been less pronounced, suggesting that the current price increase is based on real capital inflows rather than speculative leverage, providing a more sustainable foundation for the rebound.

Analysts believe that the likelihood of market volatility this week is quite high, driven by investor expectations regarding the Federal Reserve's interest rate decision. Whether the rate cut is 25 or 50 basis points, the market may oscillate between bullish optimism and cautious risk-off sentiment. Meanwhile, the correlation between Bitcoin and stocks is strengthening, indicating that trends in traditional financial markets may have an increasingly significant impact on Bitcoin's price.