Bitcoin Open Interest Soars to $1.3 Billion After US Federal Reserve’s Dovish Outlook

Bitcoin Open Interest (OI) surged to over a billion hours after the United States Federal Reserves published its July meeting minutes. The BTC Open Interest jumped to $31.86 billion, representing an increase of $1.26 billion over the past day.

The Fed meeting report reignited optimism among investors, with Bitcoin price pushing above $60,000 today. Some analysts believe the Fed's meeting brief confirms a rate cut in September.

Bitcoin looks like It's ready to break higher.

The FED minutes were released a few hours ago, with a very dovish tone.

Some members even signalling for July rate cuts.

Chart wise

>USDT.D breaking down(before BTC breaking up)
>DXY breaking down
>BTC looking ready... pic.twitter.com/hiJnxRuPDQ

- Sykodelic (@Sykodelic_) August 21, 2024

Bitcoin Open Interest Rising Confirming Investors' Interest

The open interest represents the total number of derivative contracts, both futures and options, that are yet to be settled.

An increase in OI often shows rising confidence among traders in predicting Bitcoin's next price moves. However, CoinGlass data shows that investors' sentiment on whether BTC's price will rise or fall is almost even.

Long traders hold 50.63% of the total future positions, while the seller or short traders hold 49.37%. Notably, Head of 10x Research Markus Thielen claims the Fed's minutes make a September rate cut almost certain.

He noted that the Federal Reserve's minutes were dovish, as expected, and the major focus was employment. Moreover, a large section of the FOMC members support a rate cut in September. The anticipation of a rate cut could increase investor confidence, leading to price rallies for Bitcoin.

Crypto trader Sykodelic is bullish on Bitcoin and believes it is ready to break higher. According to the trader, the FED minutes followed a dovish tone, confirming possible rate cuts ahead.

Sykodelic noted that on the charts, USDT.D shows the dominance of USDT in the market. The decline of USDT.D confirms that investors are increasing their capital in assets like Bitcoin.

The trader stated that rate cuts weaken the dollar, forcing investors to look for riskier assets like Bitcoin. He believes Bitcoin might retrace to give investors the last buying opportunity of the year before it rallies.

Analyst Bullish on Bitcoin in Q4

Crypto analyst Nishant Bhardwaj urged his followers to prepare for one of Bitcoin's most explosive Q4s in history.

Prepare yourself for one of the most explosive Q4 in history, for #Bitcoin US markets and Indian markets, here is why :-

Historic Rate Cuts Incoming : The FED is on the verge of slashing rates after pushing interest rates to a staggering 30-year high.

U.S. Presidential Showdown...

- Nishant Bhardwaj (@Nishant_Bliss) August 21, 2024

Bhardwaj believes the US and Indian markets will benefit from the price movements. Bhardwaj noted that historic rate cuts come while the Federal Executive Council prepares to slash interest rates.

He also profiled the upcoming US presidential elections. His analysis shows VP Kamala Harris wants a massive tax increase, while Donald Trump promises to cut these taxes. So, the result of the US Presidential elections will profoundly affect the financial market.

Additionally, Bhardwaj predicts high market volatility within the next four months, which could define the decade.

Meanwhile, 10x Research's Markus Thielen believes Federal Reserve Chairman Jerome Powell's Friday speech will confirm the dovish stance. Powell's speech will likely boost the value of risk assets such as stocks and cryptocurrencies like Bitcoin.

Nevertheless, Caldwell Investment Management Portfolio Manager Justin Elliot does not expect a rate cut soon.

Elliot explained in an interview that no evidence supports the widespread belief that the Feds will trim interest rates. He noted that rate cuts weaken the dollar; hence, they will not be frequent.

So, Bitcoin's value will likely increase in the coming weeks if the rate cuts become a reality.

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