This Is How Bitcoin (BTC) Derivatives Market Is Responding Prior To FOMC Decision
Ahead of the all important Fed FOMC meeting November 2022 that decides interest rate, Bitcoin derivatives show some important insights. It is widely believed that the meeting would result in a 0.75% interest rate hike followed by a 0.50% rise in December. In this context, it remains to be seen how Bitcoin (BTC) price would react after the decision is announced. Om Wednesday, BTC largely displayed sideways movement, in a potential anticipation of bullish momentum.
Bitcoin FOMC Decision – The Derivatives
As the market prepares for the Fed announcement, Bitcoin whales appear to be involved in inflow of assets into exchanges. As per on chain data from Crypto Quant, open interest on the derivatives market has decreased in recent times. Interestingly, this pattern coincided with Bitcoin reaching the monthly high of around $21,000. Overall, there is high selling pressure for both Bitcoin and Ethereum ahead of the FOMC meeting.
“As the bitcoin price rise, the open interest on the derivatives market has decreased, signaling that traders have closed their long bets.”
Meanwhile, stablecoins are flowing into exchanges in big volumes. This could be a positive indication for BTC’s prospects in the long term. As of writing, BTC price stands at $20,481, up 0.31% in the last 24 hours, according to price tracking platform CoinMarketCap. Ethereum price stands at $1,567, down 0.29% in the last 24 hours.
U.S. Based Traders Keep Accumulating BTC
It is also found that crypto traders from the U.S. have in the recent times continued to purchase Bitcoin. Despite several headwinds, traders from the U.S. accumulated Bitcoin since July this year, more than anywhere else. “Since July 28, 2022, the main interest has come from U.S. traders who are are trying to accumulate BTC.”
In this context, BTC price movement could go either way following the Fed rate announcement. In the recent past, there were instances when BTC price dipped a bit before the announcement followed by a sharp rise in all cryptocurrencies.
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