- The open interest in Bitcoin futures reached $31.92 billion on August 22.
- The OI is the sum of all unsettled derivative contracts, including futures and options.
Some have taken the release of the US Federal Reserve’s meeting minutes from July as more confirmation of a rate decrease in September. However in the hours after the release, Bitcoin futures traders added over a billion dollars to Bitcoin Open Interest (OI). With a gain of $1.26 billion in the last 24 hours, the open interest in Bitcoin futures reached $31.92 billion on August 22.
The open interest (OI) is the sum of all unsettled derivative contracts, including futures and options. Traders’ optimism about the future of Bitcoin’s price, up or down, is reflected in an increasing OI. The data, however, demonstrates that the cohort is not unanimous. Especially, on the matter of whether the price of Bitcoin (BTC) will go up or down.
High Volatility Anticipated
During the 24-hour period, the data from CoinGlass shows that long traders had a little lead with 50.63 percent of the total future holdings. While shorts had 49.37 percent. The price of Bitcoin has stayed relatively stable around the $60,000 mark since August 9th, according to statistics from CMC.
According to a study by 10x Research’s director of research, Markus Thielen, the Federal Reserve’s minutes “makes a rate cut in September almost a certainty”. Thielen said that a rate reduction in September was supported by a “vast majority” of FOMC members. And that some members were even thinking about cutting in July.
When interest rates fall, investors often shift their money from bonds and term deposits. Which are considered secure investments, to Bitcoin and other assets that are seen as riskier. The dovish stance is anticipated to be further reinforced in Powell’s Friday address. Which might lead to an increase in risk assets such as Bitcoin and equities due to the supportive monetary policy environment.
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