Jerome Powell

Bitcoin

Gold

Catch Up

<p>K33 Research, the popular crypto market analytics platform, noted that the <a href="https://www.thecoinrepublic.com/price-prediction/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> derivates data points out the growing risk of a major “short squeeze” which can lead to a sharp bounce back in the Bitcoin price to $70,000.</p>
<p>To confirm its analysis, K33 Research pointed out the funding rate for the Bitcoin perpetual futures that helps to gauge either the bullish or the bearish sentiment.</p>
<p>As per the platform, the seven-day average annualized BTC funding rate as of Tuesday, August 20, has been the lowest since March 2023, at around minus 2.5%.</p>
<p>In a note to investors, K33 analysts Vetle Lunde and David Zimmerman wrote:</p>
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 <p>“Perpetual swap funding rates have averaged at negative levels over the past week, while open interest has sharply increased. This suggests aggressive shorting, structurally creating a setup ripe for a short squeeze.”</p>
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<h2 class="wp-block-heading" id="h-will-bitcoin-catch-up-with-global-markets-and-gold"><strong>Will Bitcoin Catch Up With Global Markets and Gold</strong></h2>
<p>The Bitcoin price has struggled to seek enough bullish support to sustain past the $60,000 level. After the early week rally, BTC is once again down over 2% trading at $59,672 as of press time.</p>
<p>On the other hand, the US stock indices have been surging higher with Gold hitting a fresh all-time high above $2,500 this week. Thus a Bitcoin short squeeze might help the largest crypto asset class close the gap with stocks and Gold.</p>
<p>The derivatives data from&nbsp;<a href="http://greeks.live/" rel="noopener noreferrer nofollow">Greeks.Live</a>&nbsp;shows that BTC options block trading has been on the rise recently with traders selling the call options and buying the put options. Also, the implied volatility has dropped under 50% highlighting strong bearish sentiment from options traders, for the month of August.</p>
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   <p lang="en" dir="ltr">Block trading, which has been dormant for days, is back on fire, with significant growth in block trades traded today, with a notional value of over $500 million.<br>3,643BTC block call options traded, accounting for 24% of the day's total trading, 2,084BTC block put options traded,… <a href="https://t.co/Ks7JmZ1MMr" rel="noopener noreferrer nofollow">pic.twitter.com/Ks7JmZ1MMr</a></p>— Greeks.live (@GreeksLive) <a href="https://twitter.com/GreeksLive/status/1825726669531001171?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 20, 2024</a>
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<h2 class="wp-block-heading" id="h-btc-open-interest-shoots-bitcoin-derivates-data-showing-this"><strong>BTC Open Interest Shoots, Bitcoin Derivates&nbsp;Data Showing This</strong></h2>
<p>The K33 Research analysts also noted that the notional BTC open interest in the perpetual market has surged nearly 29,000 Bitcoin over the past week. Moreover, as of August 20, the</p>
<p>The K33 Research analysts also noted that the notional BTC open interest in the perpetual market has surged nearly 29,000 Bitcoin over the past week. On the other hand, the BTC funding rate has turned negative. Analysts Lunde and Zimmerman highlighted that this combination of rapidly rising open interest and a negative funding rate is an uncommon occurrence in the market.</p>
<p>Recently, the Bitcoin price movement has been much in tune with the global macro developments. Thus, all eyes will be on the FOMC meeting scheduled on Wednesday, August 21, as investors eagerly await the Fed commentary following it. Fed Chair Jerome Powell is likely to hint at the rate cuts moving forward. Analysts are predicting a 25 bps or 50 bps rate cut in the next month of September.</p>
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/26a1.png" alt="⚡" class="wp-smiley" style="height: 1em; max-height: 1em;">POWELL'S JACKSON HOLE SPEECH TO SUPPORT SEQUENCE OF 25BP CUTS<br><br>Fed Chair Powell will "express a bit more confidence in the inflation outlook" in his Jackson Hole speech, while putting "a bit more emphasis on downside risks in the labor market" than he did in the July Q&amp;A,…</p>— *Walter Bloomberg (@DeItaone) <a href="https://twitter.com/DeItaone/status/1825945878248538145?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 20, 2024</a>
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<p>The post <a href="https://www.thecoinrepublic.com/2024/08/21/bitcoin-derivatives-data-hints-at-major-btc-short-squeeze-70000-coming/" rel="noopener noreferrer nofollow">Bitcoin Derivatives Data Hints At Major BTC Short Squeeze, $70,000 Coming?</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

Bitcoin Derivatives Data Hints At Major BTC Short Squeeze, $70,000 Coming?

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