Analysis: The inflow of stablecoin funds increased before the interest rate decision, providing a supportive foundation for the upward trend due to macro tailwinds

ChainCatcher news, according to CoinDesk, the inflow of funds into stablecoins is rising ahead of the Federal Reserve's interest rate decision tonight. Aside from the nearly certain 25 basis point rate cut, traders are also watching for signs that the Fed may slow down the reduction of its balance sheet, which would further ease financial conditions and could be a potential boon for risk assets.

Trading activity is currently becoming subdued, with liquidity on centralized exchanges significantly declining, and the order book depth is only at 40% of the pre-liquidation level of 1011. According to market news, the supply of stablecoins has risen for the first time since September, indicating that "macro tailwinds are translating into new inflows." Meanwhile, the perpetual futures funding rates for most major tokens have now turned positive again, and the open interest for BTC and ETH is "rebuilding at a steady pace."

Although Uptober (Upward October) shows slight signs of a false start, macro tailwinds, cooling inflation, stabilizing geopolitical tensions, and a dovish Fed are laying the groundwork for the remaining gains this year. Historical data shows that the fourth quarter has always been the strongest period for Bitcoin. The vast majority of analysts hold the view that a breakout seems imminent.