Following the Fed minutes announced yesterday in cryptocurrencies, the price increase affected the entire market and it was seen that the market in general, especially BTC, took on a positive outlook. During this period, data emerged showing that some developments have occurred, indicating that investors' confidence in Bitcoin has also increased. So what is happening in the market right now?

How Many Dollars is Bitcoin?

Bitcoin futures traders have shifted the focus to Bitcoin Open Interest (OI) by adding over $1 billion in new inflows in the hours following the Fed’s July meeting minutes. On August 22, Bitcoin futures OI increased by $1.26 billion compared to the previous 12 hours, reaching $31.92 billion.

In short, OI indicates the total number of derivative contracts that have not yet been closed, such as options or futures. An increase in OI indicates that there is more confidence among investors in making predictions that Bitcoin could rise or fall. Recent data shows that the group is still undecided about whether Bitcoin’s price will rise or fall.

According to data from CoinGlass covering the last 12 hours, long investors seem to have 50.63% of total futures positions, while short investors have 49.37%. Bitcoin’s price has been hovering between $50,000 and $61,000 since the beginning of August, and as of today’s writing time, it has risen again to $60,738.

Bitcoin Latest Situation

The Fed minutes “make a September rate cut almost certain,” Markus Thielen, head of research at 10x Research, wrote in an Aug. 22 report.

Thielen made the following statement:

A ‘vast majority’ of FOMC members supported a rate cut in September, with a few members even considering a July cut as a reasonable option.

Cryptocurrency analyst Sykodelic also expressed his views with the following words:

Bitcoin looks set to rally. The Fed minutes were released a few hours ago with a very dovish tone.

When interest rates fall, investors often move away from safe assets like bonds and term deposits and toward assets perceived as riskier, such as Bitcoin.

Crypto commentator Nishant Bhardwaj warned that the Fed is just around the corner from cutting interest rates, and warned investors to brace for one of the most explosive Q4s in history for the US and Indian markets.

Thielen also said:

Powell's speech on Friday is expected to reinforce this dovish outlook and boost risk assets such as stocks and Bitcoin as monetary policy provides a favorable backdrop.

Meanwhile, on August 15, approximately 1 week ago, Caldwell Investment Management portfolio manager Justin Elliot drew attention by stating that there was no data to support the “level of aggression” expected for the Fed to lower interest rates.