The price surge in cryptocurrencies following the Fed minutes announcement affected the entire market, with a positive outlook seen across the board, especially for BTC. During this period, data emerged showing increased investor confidence in Bitcoin. So, what is happening in the market right now?
Bitcoin Price Update
Bitcoin futures investors saw over a billion dollars in new Open Interest (OI) after the Fed shared its July meeting minutes, drawing attention to this area. On August 22, Bitcoin futures OI increased by $1.26 billion compared to the previous 12 hours, reaching $31.92 billion. Access NEWSLINKER to get the latest technology news.
OI refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled. The increase in OI indicates growing confidence among investors in predicting Bitcoin’s rise or fall. Recent data shows the group remains undecided on whether Bitcoin’s price will rise or fall.
According to data from CoinGlass covering the last 12 hours, long position investors hold 50.63% of total futures positions, while short position investors hold 49.37%. Bitcoin’s price has fluctuated between $50,000 and $61,000 since the beginning of August, and as of writing, it has risen to $60,738.
Current Bitcoin Status
10x Research head Markus Thielen commented in an August 22 report that the Fed minutes “almost certainly ensured a rate cut in September.”
Thielen made the following statement:
The ‘vast majority’ of FOMC members supported a rate cut in September, with a few considering it a reasonable option in July.
Crypto analyst Sykodelic also shared his views:
Bitcoin appears ready to rise. The Fed minutes were released a few hours ago with a very dovish tone.
When interest rates fall, investors typically move away from safe assets like bonds and term deposits, turning to riskier assets like Bitcoin.
Crypto commentator Nishant Bhardwaj noted that the Fed is very close to lowering interest rates, warning investors to prepare for one of the most explosive fourth quarters in history for the US and Indian markets.
Thielen also added:
Powell’s speech on Friday is expected to reinforce this dovish outlook and provide a favorable environment for increasing risk assets like stocks and Bitcoin.
Meanwhile, on August 15, about a week ago, Caldwell Investment Management portfolio manager Justin Elliot drew attention by stating that there was no data to support the expected “level of aggression” for the Fed to lower rates.
