Bitcoin and Ether Derivatives Signals After the September 2024 Fed Cut

Summary

This weekly commentary reviews Bitcoin and Ether derivatives conditions after the Federal Reserve cut rates on September 18, 2024. It reports that spot prices and derivatives sentiment improved, while futures implied yields shifted from an inverted term structure back toward prior levels. Perpetual swap funding rates recovered from a prolonged period of negative readings.

The options discussion distinguishes implied volatility from skew: at-the-money implied volatility edged lower, especially at shorter tenors, while 25-delta risk reversals rose across maturities, suggesting greater relative demand for calls. The report uses these market measures to characterize sentiment as more bullish after the policy change. It supplies no charts or numerical series in the provided text, and does not establish that the rate cut caused the market moves or that the signals predict future returns. The publisher’s disclaimer also frames the material as informational, subject to changing conditions, and unsuitable as a standalone basis for investment decisions.

Key ideas

• The report links the period after the September 18, 2024 rate cut with stronger spot prices and positive derivatives sentiment.
• Futures implied yields moved from an inverted structure back toward levels seen previously.
• Perpetual swap funding rates recovered for Bitcoin and Ether after an extended period of negative readings.
• At-the-money implied volatility eased while option skews rose, indicating increased relative preference for calls.
• The commentary is descriptive and does not show that the policy move caused these changes or that they predict returns.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.