Ahead of tonight's Federal Reserve interest rate decision, stablecoin inflows are rising. Besides the almost certain 25 basis point rate cut, traders are also watching for signs that the Fed will slow its balance sheet reduction, which would further ease financial conditions and could potentially benefit risk assets. Trading activity is currently subdued, with liquidity on centralized exchanges dropping significantly, and order book depth only 40% of pre-liquidation levels.

According to Windemute data, stablecoin supply has risen again for the first time since September, indicating that "macro tailwinds are translating into new inflows." Meanwhile, funding rates for perpetual futures on most major tokens have now turned positive again, and open interest in BTC and ETH is "rebuilding at a robust pace." While Uptober showed slight signs of a false breakout, macro tailwinds, cooling inflation, stabilizing geopolitical tensions, and a dovish Federal Reserve are laying the groundwork for a sustained rally this year. Historical data shows that the fourth quarter has consistently been Bitcoin's strongest period. The vast majority of analysts believe a breakout appears imminent. (coindesk)