- Bitcoin's Market Reactions to the FED Minutes
- FED Chair's Speech at Jackson Hole
- Significance of Futures Open Interest
The Bitcoin futures market saw a significant surge in open interest following the release of the latest Federal Reserve meeting minutes.
Bitcoin's Market Reactions to the FED Minutes
As of August 22, open interest (OI) in Bitcoin futures reached $31.92 billion, reflecting a substantial $1.26 billion increase over the past 12 hours. Currently, Bitcoin’s future open interest stands at 522.07K BTC. The major players in this space are exchanges like CME, Binance, and ByBit. CME has an open interest of 158.47K BTC, valued at $19.65 billion. Binance follows with 116.90K BTC, worth $7.12 billion, and ByBit rounds out the top three with 71K BTC, valued at $4.32 billion.
FED Chair's Speech at Jackson Hole
Markus Thielen, head of research at 10x Research, indicated that the Federal Reserve minutes suggest a high probability of a rate reduction. In his report, Thielen noted that a vast majority of FOMC members supported a rate cut in September, with some even considering a July cut as plausible. Despite the increase in OI, Bitcoin futures traders remain divided on Bitcoin’s price trajectory. According to data from CoinGlass, long positions make up 50.63% of total futures positions, while short positions account for 49.37%. Bitcoin's price has remained relatively stable, trading around $60,795 since August 9, with CoinMarketCap reporting a 24-hour gain of 2.26%.
Significance of Futures Open Interest
The Fed's communication strategy, particularly the Jackson Hole speech, often serves as a platform for delivering significant policy messages. Former Fed Chair Ben Bernanke famously used his 2010 speech to advocate for quantitative easing (QE) as a tool for stimulating the economy through bond purchases. Jerome Powell's 2018 speech 'Guided by the Stars' discussed his views on the natural real interest rate, which neither stimulates nor slows growth. More recently, Powell's 2022 speech at Jackson Hole rattled markets as he vowed to take aggressive measures to bring inflation back to the Fed's 2% target, warning of potential economic pain and higher unemployment. This Friday, Fed Chair Jerome Powell will address a symposium in Wyoming, speaking at 10 a.m. ET in front of central bankers, policymakers, and others, continuing the tradition of Fed chairs delivering keynote addresses at Jackson Hole.
The Bitcoin futures market shows a significant surge in open interest following the Federal Reserve's meeting minutes release. Major market players continue to monitor changes, anticipating the FED Chair's speech at Jackson Hole, which could influence future price movements.
Comments