Bloomberg: The outlook for monetary policy has become the main factor driving Bitcoin's short-term trends

ChainCatcher news reports that Bitcoin has fallen below the $60,000 mark ahead of widespread expectations that the Federal Reserve will cut interest rates later this week. The upcoming policy adjustments from the Fed have left global markets on edge.

The first interest rate cut in over four years in the U.S. signals a more accommodative financial environment, which is typically a positive backdrop for riskier assets like cryptocurrencies. However, investors are uncertain about the magnitude of the rate hike on Wednesday, as well as how the market will react to the latest forecasts from Fed officials (the so-called dot plot) and Fed Chair Powell's briefing.

Bitcoin's price rose 10% in the seven days leading up to last Sunday, marking the largest weekly gain since July, which may reflect a resurgence in bets on a 50 basis point rate cut by the Fed.

Caroline Mauron, co-founder of digital asset derivatives trading liquidity provider Orbit Markets, stated that in the Bitcoin options market, traders are "pricing in a weight that is significantly greater than what we've seen recently" regarding the Fed meeting.

It can be said that the outlook for monetary policy has become the main driver of Bitcoin's short-term movements, overshadowing (at least for now) the impact of the U.S. presidential election. (Bloomberg)