How Bitcoin Derivatives Market Is Doing Ahead Of 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.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.