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Bitcoin has been on a roll, hitting a high of $29,000 earlier this week. Nevertheless, these were just short-term gains as they fell below $28,000, indicating a pessimistic market attitude.
The reason for its recent uptick might be ascribed to the bullish US dollar, which climbed recently with the announcement of solid US job growth statistics, raising the likelihood of a Federal Reserve interest rate rise in May. This revelation will most certainly encourage investors to abandon cryptocurrencies such as Bitcoin, which may lose value as a result of a higher dollar.
However, according to Glassnode data, the number of Bitcoin wallet addresses holding more than 100 coins has reached a 3-month low of 15962 addresses. We can see more decentralization and equality in BTC holdings, retail investors, and even sharks starting to enter the market as it flourishes.
📉 #Bitcoin $BTC Number of Addresses Holding 100+ Coins just reached a 3-month low of 15,962
Previous 3-month low of 15,964 was observed on 06 April 2023
View metric:https://t.co/ceqO9LHIvs pic.twitter.com/jxo8sHI3xt
— glassnode alerts (@glassnodealerts) April 8, 2023
In addition, for the first time, Open Interest in Bitcoin Options contracts ($10.3 billion) has exceeded Open Interest in Futures contracts ($10 billion). This is the effect of a large call option purchase as investors begin to bet on rising Bitcoin prices.
For the first time, the amount of Open Interest in #Bitcoin Options contracts ($10.3B) has surpassed that held in Futures contracts ($10.0B).
Futures OI has been relatively flat in 2023.
This results from significant call option buys, as investors start to speculate on higher… pic.twitter.com/JtKM0uQwZP
— glassnode (@glassnode) April 8, 2023
In summary, both the Bitcoin margin and futures markets are presently neutral, which should be taken favorably given that the BTC price increased by more than 40% and was able to maintain the $28,000 level.
With the massive regulatory uncertainty created by the SEC’s Wells Notice against Coinbase on March 22, the lack of shorts utilizing leverage and futures markets now supports further price rise.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.