Bitcoin Entering 'Most Dynamic' Month on 99% Fed Rate Cut Odds: Crypto Daybook Americas

Core Insights - Crypto markets are experiencing a rise due to weaker-than-expected U.S. labor data and expectations of a Federal Reserve rate cut next month [1][3] - Bitcoin has increased by 2.15% to $118,700, while the broader market, as measured by the CoinDesk 20 index, rose by 2.33% [2] - The unexpected drop in U.S. private payrolls, with a decline of 32,000 jobs in September, has led to increased bets on a rate cut by the Federal Reserve [3] Market Reactions - The market has shown relative stability following the U.S. government shutdown, reminiscent of the 2018-2019 shutdown, which lasted 35 days [4] - Derivatives markets reflect a shift, with open interest rising nearly 4% to $216 billion, and spot crypto ETFs seeing over $2.3 billion in net inflows since the beginning of the week [5] Structural Considerations - Concerns have been raised about structural risks in Bitcoin adoption, particularly strategies relying on stock premiums [6] - Investors are increasingly turning to alternative assets like gold and crypto as economic signals become murkier [6] - Bitcoin's price structure is showing signs of consolidation, with potential for volatility in the coming month [6]