Rally

Bitcoin

Million

First Bitcoin

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 <p>Grayscale recently won its lawsuit against the SEC, scripting yet another historic victory for the crypto industry. On the back of this development, the price of Bitcoin initiated a hype pump and rose to $28,143. The rally was accompanied by a multi-month high in the asset’s futures open interest.</p> 
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    <p lang="en" dir="ltr">On the heels of a win for Grayscale in court, today is set to be the biggest jump in Bitcoin futures open interest since November. pic.twitter.com/XwoWVahBTf</p>— Velo Data (@VeloData) August 29, 2023
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 <p><strong>Also Read: Argentina is Adopting Bitcoin Faster than El Salvador: Ark Invest</strong></p> 
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 <p>A spike in open interest usually means more traders are entering the market. Historically, such moves tend to strengthen ongoing trends. However, the rise in speculative interest could prove detrimental if it is not accompanied by a parallel rise in spot volume. So, in this article, we will analyze if the current uptrend in Bitcoin is sustainable or not.</p> 
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   <img decoding="async" src="https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp" alt="" class="wp-image-109447" style="width: 100%;height:308px" width="475" height="308" srcset="https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 1024w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 300w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 768w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 1536w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 230w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 260w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 380w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 550w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 800w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 1160w, https://cdn.thebittimes.com/images/2023/08/30/fa31b269d2a8d5f9049a840b7b022ee2.webp 1920w" sizes="(max-width: 475px) 100vw, 475px">
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    Source: CNBC
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 <h3 class="wp-block-heading" id="h-was-btc-s-rally-a-spot-driven-move">Was BTC’s Rally a Spot-Driven Move?</h3> 
 <p>A recent <a rel="dofollow" title="Category Analysis" href="https://thebittimes.com/analysis.html">Analysis</a> by pseudonymous on-chain analyst MAC.D on CryptoQuant pointed out that the spot vs. derivative trading volume ratio decreased yesterday rather than increased. Additionally, he pointed out that the volume chart separately showed that the trading volume has been decreasing steadily when compared to the rebounds registered in January, March, and June 2023. In fact, it was ”the lowest yesterday,’ he pointed out. As far as specific numbers are concerned, the spot exchange trading volume stood at $74,699 yesterday, while the derivatives exchange trading volume was at $1,416,108. Market observers have been expressing their dejection. A particular user posted on X [formerly Twitter] recently,</p> 
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 <p><strong>“I was hoping for more of a spot driven move.”</strong></p> 
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    <p lang="en" dir="ltr">The recent $BTC rally was driven by Derivatives Exchanges, not Spot Exchanges<br><br>"There is a tendency for prices to change significantly even with small trading volumes because the overall liquidity in the cryptocurrency market has decreased."<br>by @mac_d46035<br><br>Link👇… pic.twitter.com/7dNkioAP0B</p>— CryptoQuant.com (@cryptoquant_com) August 30, 2023
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 <p><strong>Also Read: Europe’s First Bitcoin ETF Faces ESG ‘Controversy’</strong></p> 
 <p>The market is currently in the midst of a macro liquidity crunch. MAC.D pointed out that in such situations, there is a tendency for prices to change significantly, even with small trading volumes. Hype rally phases are usually accompanied by investor FOMO. The analyst warned investors against accumulating without a plan.</p> 
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 <p>For the bullish momentum to continue, spot volume will have to increase over the next few trading sessions. Alongside this, it is also pivotal for the BTC to close above the $27,200 support on the monthly chart for the bullishness to renew. If these conditions are not met, BTC will likely initiate a correction sooner or later.</p> 
 <p><strong>Also Read: SPX Gearing to Create 22 Year Bearish Record: Will Bitcoin Follow?</strong></p> 
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  <li>bitcoin</li>
  <li>btc</li>
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/bitcoin-derivatives-volume-rises-to-1-4-million-tbt60890.html">https://thebittimes.com/bitcoin-derivatives-volume-rises-to-1-4-million-tbt60890.html</a></p>

Bitcoin Derivatives Volume Rises to $1.4 Million

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TheBitTimes

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