Bitcoin options market positioning shifted as BTC price shot through the $60,000 to $63,000 level.
Bitcoin (BTC) surged by 6% after the United States Federal Reserve (Fed) lowered interest rates by 0.50% on Sept. 18, pushing its price to a three-week high near $63,500. Despite this rally, derivatives metrics indicate that Bitcoin bulls are hesitant to increase leveraged positions, putting the $62,000 support level under pressure.
The US jobless claims report released on Sept. 19 further lifted investor sentiment, with weekly filings for unemployment benefits falling to a four-month low of 219,000, down from the July peak of 250,000. Although still relatively high, the decline signals improvement. Stephen Innes of SPI Asset Management told Yahoo Finance that the Fed's focus "has now decisively shifted to the labor market," given that inflation is relatively stable at 2.5%.
In response to these developments, US stock markets also performed well, with the S&P 500 reaching an all-time high on Sept. 19. Fed Chair Jerome Powell reassured investors, stating that "the US economy is in good shape" and the rate cut was "a sign of faith, not panic." Powell further explained, "The time to support the labor market is when it's strong, not when you begin to see layoffs."
