In its recent analysis, CryptoQuant, a firm specializing in cryptocurrency insights, revealed that Bitcoin’s value surpassed the $115,200 mark following the Federal Open Market Committee (FOMC) meeting. Notably, around 95% of Bitcoin’s circulating supply was reported to be profitable.
The analysis emphasized that sustaining this price level is crucial for preserving upward market momentum; otherwise, there is a risk of a decline back into the $105,500 to $115,200 range.
Prior to the FOMC meeting, short positions in the futures market faced significant pressure as perpetual open positions peaked at 395,000 BTC before dropping to 380,000 BTC. Although short positions were liquidated ahead of the meeting outcome announcement, subsequent price corrections resulted in long position liquidations.
A remarkable milestone was achieved within the options market where open interest soared to an all-time high of 500,000 BTC. Analysts noted that September 26th would mark one of history’s largest expirations for this sector and highlighted that hitting a “maximum loss” threshold at $110,000 could greatly influence spot prices.
Additionally, CryptoQuant indicated an uptick in volatility pricing leading up to the FOMC meeting. Dealer positioning suggested hedge flows capable of both bolstering bullish trends and cushioning against pullbacks. While selling pressure remained minimal on spot markets during this period; perpetual futures managed liquidity effectively resulting in a balanced perspective on future movements.
The report concludes by indicating that Bitcoin’s market remains precariously poised after the FOMC discussions. The unprecedented open interest seen within options trading hints at potential increases in volatility ahead; however maintaining prices above $115,200 is deemed essential for ongoing upward movement.
*This information should not be construed as investment advice.