Bitcoin and Ether Upswing as Downside Fears Ease Before Fed Rate Decision

Recent options market data indicates reduced fears of a downside for bitcoin (BTC) and ether (ETH). The upcoming Fed rate cut on Sept. 17 will influence the pace of their upward movement.

BTC's seven-day call/put skew has improved from a bearish 4% to nearly zero, suggesting decreased downside concerns.
The 30- and 60-day option skews have also rebounded, though they remain slightly negative.
Ether's options skew is showing a similar trend.

A positive skew suggests bullish sentiment, while a negative skew indicates demand for downside protection. The reset in options coincides with price increases for BTC and ETH as the Fed prepares for a rate decision.

BTC rose over 4% to more than $116,000 in seven days.
ETH increased nearly 8% to $4,650.

According to CME's Fed funds futures, there is a 90% probability of a 25 bps rate cut to 4%-4.25%, with a slight chance of a 50 bps move. A surprise 50 bps cut could significantly boost BTC, ETH, and SOL, per Greg Magadini from Amberdata.

If the Fed cuts by 25 bps, a steady increase for BTC is expected.
ETH might take additional time to reach above $5,000.