On August 22, the open interest in Bitcoin futures reached a new record high of $31.92 billion. This surge follows the market's reaction to the release of the Federal Reserve meeting minutes.
Rise in Open Interest
Open interest (OI) represents the sum of all unsettled derivative contracts, including futures and options. On August 22, it reached $31.92 billion, indicating traders' optimism about Bitcoin's future price. The OI increased by $1.26 billion in the last 24 hours.
Volatility Predictions
According to CoinGlass data, long positions dominated the market in the last 24 hours, accounting for 50.63% of total futures holdings, while short positions held 49.37%. Bitcoin's price stability around the $60,000 mark since August 9 further emphasizes the market balance.
Fed's Position Reaction
According to 10x Research Director of Research Markus Thielen, the Federal Reserve meeting minutes make a rate cut in September almost certain. Some committee members even considered cutting rates in July. Lower interest rates often lead to a shift in investments from bonds to riskier assets like Bitcoin. A dovish stance is expected to be reinforced by Fed Chair Jerome Powell's speech on Friday, potentially boosting risk assets.
The release of the Federal Reserve meeting minutes and the market's reaction resulted in a significant increase in the open interest in Bitcoin futures. Future interest rate changes may further impact the cryptocurrency market dynamics.
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