Will Bitcoin Surge Again? Bitcoin Open Interest Increases as the Fed Hints at Rate Cuts

IconCryptoNewsTerminal Staff22 Aug, 2024

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Will Bitcoin Surge Again? Bitcoin Open Interest Increases as the Fed Hints at Rate Cuts

Cointelegraph recently reported that Bitcoin's open interest has spiked by over $1.2 billion since the release of the minutes from the U.S. Federal Reserve's July meeting. This surge in open interest suggests that the market anticipates a rate cut in September. Analysts believe that this could lead to significant price movements for Bitcoin in either direction in the near future. Markus Thielen, founder of crypto market analytics firm 10x Research, stated that "The minutes revealed that the majority of FOMC participants favored a rate cut in September, with some even considering the possibility of cutting rates as early as July." This dovish stance from the Fed aligns with market expectations and implies that Bitcoin may be poised for further gains. This is particularly true if Fed Chair Jerome Powell provides a clearer indication of a rate cut at the Jackson Hole meeting. Such a move would create a favorable environment for risk assets, such as Bitcoin and stocks.

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