How folks are positioned into the FOMC meeting

Once again, we are here at a pivotal point, with the markets waiting for the week's macro events to play out.

Macro events for the week

For today, it'll be the FOMC - what rates will be and how Powell speaks.

After kicking off the year with a green January,, let's take a quick look at how folks are positioned as we head into Feb's FOMC.

Funding rates

Funding rate - Coinglass

After shorts got rekt pretty much for the entire month of Jan 2023, the market has cleared out most shorters and looks like folks are mainly long for now according to the funding rates at centralized exchanges.

Over at decentralized exchanges like GMX, we can see a similar position as well, as traders are now overly long vs short.

Longs vs Shorts -

Supply on Exchanges

While the FTX saga from last year has placed a spotlight on self-custody and probably responsible for huge reduction in Supply on Exchanges since Nov 2022, I think enough time has passed for folks to more or less become degen again.

Especially when Binance coins are pumping all over, it's hard not to send funds in to buy. On that same note, to sell as well.

BTC supply on exchanges - Sanbase
ETH supply on exchanges - Sanbase

Looking at both BTC's and ETH's supply on exchanges, it just seems like folks are pretty comfortable where they are and in no hurry to offload any of it.

Chart link:

In summary, folks are bullish heading into the FOMC.


Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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