The cryptocurrency markets have seen an injection of optimism following the United States Federal Reserve’s latest rate hike of 75 basis points. While top traders on OKX are cautiously optimistic about BTC, bullish feelings abound for ETH ahead of Ethereum’s Merge upgrade from proof-of-work to proof-of-stake.
Let’s take a look at the data on OKX.
Key takeaways
- BTC and ETH futures open interest rose in July but has calmed down recently.
- BTC options open interest is challenging last month’s highs.
- Top traders are cautiously optimistic about BTC.
- Top traders are extremely optimistic about ETH ahead of Ethereum’s Merge.
BTC and ETH open interest increasing calmly
Open interest — the total number of outstanding derivative contracts — for BTC futures on OKX has risen steadily throughout the month of July, but has evened out over the past week or so. This data signals that more money entered the BTC futures market in the month of July but has steadied in recent days.
Though open interest itself is not inherently bullish or bearish, cryptocurrency market participants generally want to see money flow into the market (as opposed to leaving it).
Steadying open interest may also be interpreted as a positive — as it decreases the likelihood of too many participants being overleveraged.
Open interest for ETH futures has also been in a general uptrend throughout the month of July. However, it has experienced a longer period of flattening out — signaling that The Merge hasn’t provoked new money to enter (and/or stay) in the market over recent weeks, and also that overleveraging isn’t a terrible concern at the moment.
Open interest for BTC options has also risen steadily over the month of July and is challenging local highs set in June — signaling interest in options contracts for the leading cryptocurrency.
Top-trader sentiment more bullish on ETH than BTC
The sentiment among top traders on OKX saw a temporary decline into bearishness but has bounced back.
Following the latest interest rate hike from the United States Federal Reserve, top traders have seen an injection of bullishness for BTC. Still, sentiment is down from July’s highs as traders remain cautious about the first and foremost coin’s future.
The sentiment surrounding ETH from top traders on OKX is significantly more bullish than that surrounding BTC. The sentiment bounce back for the second-ranked cryptocurrency has surpassed highs not seen in months as top traders prepare for Ethereum’s Merge.
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Source: https://www.okx.com/academy/en/top-trader-sentiment-surges-before-ethereum-merge