Recent significant changes in Bitcoin's price include the impact of US interest rates and shifts in the futures market.
Impact of US Interest Rates on Bitcoin
US interest rate changes significantly impact Bitcoin’s price. According to Santiment, aggressive rate hikes since 2022 have increased volatility in both traditional and crypto markets. Examples include an 18% price drop in June 2022 with the first rate hike since 2018, and a 15% price increase in December 2024 after a 25 basis point cut.
Bitcoin Price Uncertainty in the Past 24 Hours
In the past 24 hours, Bitcoin's price has experienced significant fluctuations. It reached a two-week high at around $87,500 but later declined below $84,000. Its market capitalization is roughly $1.7 trillion. Bitcoin's market dominance has decreased to 58.4%.
Decrease in Bitcoin Futures Open Interest
Futures open interest, which measures the total of all opened positions in the derivatives market, decreased from $57 billion to $37 billion over the past two months. This indicates reduced speculation and increased hedging by investors against current market volatility. This is notably linked to a broader contraction in on-chain liquidity, indicating a shift toward risk-off behavior.
US interest rates continue to significantly influence Bitcoin's price fluctuations. Market instability and a declining interest in futures suggest possible changes ahead as investors monitor market dynamics closely.
