Fed data shows hedge funds added $400 billion before Bitcoin’s September rate test

Federal Reserve data indicates that domestic hedge funds increased their gross balance sheets by $400 billion in the second quarter, reaching $3.1859 trillion. This rise in leverage, alongside increased short positions and margin loans, creates potential liquidity risks ahead of the FOMC meeting on September 15–16, 2026. Market analysts suggest that any policy surprises could force funds to liquidate assets, indirectly impacting Bitcoin.