Bitcoin Leverage Surges to $37 Billion Ahead of Fed Rate Cut Decision

Summary

Bitcoin derivatives open interest surged to $37.63 billion as traders amped positions ahead of an expected 25‑basis‑point Federal Reserve cut, lifting the price above $116,000 from about $107,600 last week. The jump in open interest from roughly $33 billion and a Myriad prediction‑market probability of 92.6% for the rate cut signal heavy positioning; Bitget CEO Gracy Chen said markets have priced the move and forecasted $118,000–$120,000 by month‑end if $112,000 support holds. The buildup increases the risk of leverage‑fueled volatility for traders and crypto venues, raising potential for sharp liquidations and market stress if the Fed’s decision or price action disappoints.