Analysis: The inflow of stablecoin funds has risen ahead of the interest rate decision, providing a supportive foundation for the pump.

On October 29, ahead of the Fed's interest rate decision tonight, the inflow of stablecoins is rising. Aside from the nearly certain 25 basis point rate cut, traders are also following whether the Fed will show signs of slowing down the reduction of its balance sheet, which would further ease the financial environment and potentially become favorable information for risk assets. Trading activity is currently trending dull, and liquidity on centralized trading platforms has significantly decreased, with the order book depth at only 40% of the level before the 1011 liquidation. According to Wintermute data, the supply of stablecoins has risen for the first time since September, indicating that “macroeconomic tailwinds are turning into new inflows of funds.” Meanwhile, the perpetual futures funding rates for most major tokens have turned positive again, while the open contracts for BTC and ETH “are rebuilding at a steady pace.” Although Uptober shows slight signs of a false start, the macroeconomic tailwinds, cooling inflation, stabilizing geopolitical tensions, and the dovish Fed are laying the foundation for further rises for the remainder of the 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.