The Price of BTC Might Drop with the Introduction of Futures Investors
The price of BTC is likely to drop on the introduction of investors who buy futures and raise market's knowledge on latest boost.
Bitcoin’s price has risen above $20,000, and although it is currently trading below that level, the cryptocurrency charts show a 1.4% increase over the past 24 hours. On-chain analysts are predicting higher levels of volatility in the coming days.
- The cryptocurrency market added some $50 billion in the past day as Bitcoin’s price is approaching the critical level of $20K, which also contains the highs from the cycle in 2017-2018.
- At the time of this writing, the price is trading slightly below that point but has still risen about 1.4% on the day.
- The futures market is growing, and as a result, volatility could increase.
- CryptoQuant analyst's report showed that the open interest on the most recent pump increased by $615 million in a few hours.
- The open interest and funding rates are the two most significant factors to determine where the price of an asset might end up.
- This time, funding rates appear to be almost neutral.
This means that long and short traders are almost in balance. Leverage added to both sides (long and short) and will increase volatility in the near term.
- As for leverage, it's worth mentioning that the past 24 hours saw around $180 million in liquidated positions, 75% of which were short positions.
- Coinglass data indicates that the open long positions for the past 24 hours are 51%.