- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
- Earn
- More
Market Expects Fed to Hold Rates in January, Options Market Increases Bet on Fed Standing Pat All Year
BlockBeats News, January 14th, more and more options traders are excluding the expectation of a Fed rate cut in 2026 and are instead betting on it maintaining the interest rate unchanged throughout the year. This trend can be traced back to at least last Friday when U.S. employment data showed an unexpected drop in the unemployment rate. According to market pricing, this has almost eliminated the possibility of a Fed rate cut this month, prompting more and more traders to postpone their expectations for a rate cut in the coming months. TJM Institutional Services interest rate strategist David Robin pointed out: "From a data perspective, the probability that the Fed will keep rates unchanged at least until March has increased, and as each meeting passes, the likelihood of rate stability increases." The options flow closely linked to the Fed's short-term benchmark rate has recently conveyed a more hawkish signal.
New option positions are mainly concentrated in March and June contracts to hedge against a scenario where the Fed's next rate cut action is continuously delayed. Positions targeting longer-dated contracts are expected to benefit from the Fed's stance of keeping rates unchanged throughout the year. Robin stated that the cost of these trades is low regardless of whether the market believes the Fed will stand pat. As a prudent risk manager, you would want to hold such positions. (FX678)
You may also like
Gold Plunges Over 4%, Silver Crashes 11%, Stock Market Plummet Triggers Precious Metals Algorithmic Selling Pressure?
Coinbase and Solana make successive moves, Agent economy to become the next big narrative
Aave DAO Wins, But the Game Is Not Over
Coinbase Earnings Call, Latest Developments in Aave Tokenomics Debate, What's Trending in the Global Crypto Community Today?
ICE, the parent company of the NYSE, Goes All In: Index Futures Contracts and Sentiment Prediction Market Tool
On-Chain Options: The Crossroads of DeFi Miners and Traders
How WEEX and LALIGA Redefine Elite Performance
WEEX x LALIGA partnership: Where trading discipline meets football excellence. Discover how WEEX, official regional partner in Hong Kong & Taiwan, brings crypto and sports fans together through shared values of strategy, control, and long-term performance.
Best Crypto to Buy Now February 10 – XRP, Solana, Dogecoin
Key Takeaways XRP is set to revolutionize cross-border transactions, potentially reaching $5 by the end of Q2 with…
Kyle Samani Criticizes Hyperliquid in Explosive Post-Departure Market Commentary
Key Takeaways: Kyle Samani, former co-founder of Multicoin Capital, publicly criticizes Hyperliquid, labeling it a systemic risk. Samani’s…
Leading AI Claude Forecasts the Price of XRP, Cardano, and Ethereum by the End of 2026
Key Takeaways: XRP’s value is projected to reach $8 by 2026 due to major institutional adoption. Cardano (ADA)…
Bitcoin Price Prediction: Alarming New Research Cautions Millions in BTC at Risk of ‘Quantum Freeze’ – Are You Ready?
Key Takeaways Quantum Threat to Bitcoin: The rise of quantum computing presents a unique security challenge to Bitcoin,…
XRP Price Prediction: Could XRP Ultimately Surpass Bitcoin and Ethereum?
Key Takeaways XRP has maintained a strong position despite a recent 12% drop, suggesting potential for growth. Analyst…
Best Crypto to Buy Now February 6 – XRP, Solana, Bitcoin
Key Takeaways The cryptocurrency market is experiencing pressure due to a technology-sector selloff, affecting digital assets like Bitcoin.…
South Korea Broadens Crypto Market Investigation Following Bithumb’s $44 Billion Bitcoin Error
Key Takeaways South Korea intensifies scrutiny on cryptocurrency exchange operations after Bithumb’s significant Bitcoin transaction error. Regulatory bodies,…
Tom Lee-Supported Bitmine Dominates 3.6% of Ethereum Supply Post-Price Crash
Key Takeaways Bitmine Immersion Technologies now controls 3.6% of Ethereum’s total supply after strategic purchases during market downturns.…
XRP Yearly Returns Hit Record Low Since 2023
Key Takeaways XRP’s yearly returns are at their lowest since 2023, as the crypto market grapples with a…
BTC Traders Eye $50K as Potential Bottom: Key Metrics to Monitor This Week
Key Takeaways Traders are closely monitoring the potential bottom for Bitcoin at $50,000 as recent price movements suggest…
Fraudulent ‘XRP’ Issued Token Sparks Confusion on the XRP Ledger
Key Takeaways An imposter XRP token is causing bewilderment within the XRP community by being superficially identical to…
App