Markets are subdued ahead of Wednesday's U.S. open as traders await the Federal Reserve's rate decision later today, with policymakers widely expected to leave interest rates unchanged.
Risk assets are showing mixed performance. The Invesco QQQ is up 0.54%, while gold is little changed, down 0.08% at $4,327 per ounce. Bitcoin has slipped 1.5%, falling below $65,000, and the U.S. Dollar Index (DXY) is holding at 99.6, just under the key 100 level.
Oil remains the standout mover in recent sessions, trading around $76 per barrel as geopolitical tensions ease.
Bitcoin's Sharpe Ratio Flashes a Bottom Signal
According to data, Bitcoin's Sharpe ratio has hit a level that has marked every cycle low since 2015. However, in each case, it preceded months of basing rather than an immediate rebound. This suggests that while a bottom may be near, a quick recovery is unlikely.
Long-Term Holders Absorb 125,000 BTC
In a show of strong conviction, long-term holders absorbed 125,000 BTC in June, indicating accumulation despite price weakness. This behavior is often seen as a bullish signal, as it reduces the available supply on exchanges.
Market Sentiment Cautious
The broader market is treading cautiously ahead of the Fed decision. The DXY hovering near 100 suggests a potential pivot in dollar strength, which could impact Bitcoin and other risk assets.
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