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The Bitcoin market is heating up ahead of a crucial decision by the U.S. Federal Reserve. Open interest in the leading crypto has seen a dramatic increase of $2 billion, reflecting investor anticipation of a likely interest rate cut in September.
The Fed is paving the way for monetary easing!
Open interest in Bitcoin has seen a meteoric rise since the publication of the minutes from the Fed’s last meeting. Despite the status quo on rates in July, the tone of the document clearly suggests an imminent change in direction.
“The majority of participants noted that disinflationary pressures should continue in the coming months“, the report indicates. This outlook for monetary easing has instantly galvanized investors.
On Wall Street, major indices closed higher on Wednesday, continuing their rise on Thursday.
The crypto market is no exception, with a spectacular surge in open interest in Bitcoin. According to CoinGlass data, it increased by 5.53% to reach $32.34 billion, an unprecedented level since early August.
A bullish signal for Bitcoin price?
The simultaneous increase in open interest and the price of Bitcoin is generally interpreted as a bullish signal. It suggests the arrival of new capital in the market, likely to support rising prices.
Bitcoin has crossed the $61,000 threshold several times in the last 24 hours, marking a 3% rise in BTC.
However, caution is still advised. The long/short ratio of 0.9444 over 24 hours indicates a slight predominance of short positions. Investors seem divided on the short-term market outlook.
Bitcoin will need to confirm its breakthrough of $61,000, a level that has acted as a psychological resistance since early August, to convince the skeptics.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
