Bitcoin futures open interest surges $1.3B post-fed meeting minutes

Bitcoin futures open interest (OI) surged by $1.3 billion after the United States Federal Reserve released its latest meeting minutes. As of August 22, OI in Bitcoin futures has reached $31.92 billion, reflecting a significant $1.26 billion increase over the past 12 hours.

Currently, Bitcoin’s future open interest stands at an impressive 522.07K BTC. The big players in this game are the exchanges, including CME, Binance, and ByBit. CME has an open interest of 158.47K BTC, valued at $19.65 billion. Binance follows closely with 116.90K BTC, worth $ 7.12 billion, while ByBit rounds out the top three with 71 BTC, valued at $4.32 billion.

Bitcoin’s market reactions follow the FED minutes

Markus Thielen, head of research at 10x Research, has indicated that the Federal Reserve minutes suggest a high probability of a rate reduction. In the report, Thielen noted that a vast majority of FOMC (Federal Open Market Committee) members supported a rate cut in September, with several even considering a July cut as a plausible option.

Despite the increase in OI, Bitcoin futures traders remain divided on Bitcoin’s price trajectory. Over the past 12 hours, long positions held a slight edge, comprising 50.63% of total futures positions, compared to 49.37% for short positions, according to data from CoinGlass. 

Bitcoin’s price has been relatively stable, trading around $60,795 since August 9. CoinMarketCap reported a 24-hour gain of 2.26%.

Crypto traders are increasingly bullish following the Fed’s announcement. Pseudonymous trader Sykodelic noted that the Fed’s minutes have created a “very dovish” environment:

“Bitcoin looks like it’s ready to break higher”  Sykodelic

Fed Chairs to speak at Jackson Hole

The Fed’s communication strategy, particularly the Jackson Hole speech, often serves as a platform for delivering significant policy messages. Former Fed Chair Ben Bernanke famously used his 2010 speech to advocate for quantitative easing (QE) as a tool to stimulate the economy through bond purchases. 

Jerome Powell’s 2018 ‘Guided by the Stars’ speech, one of his most notable addresses, outlined his views on the natural real interest rate, which neither stimulates nor slows growth. More recently, Powell’s 2022 speech at Jackson Hole rattled markets as he vowed to take aggressive measures to bring inflation back to the Fed’s 2% target, warning of potential economic pain and higher unemployment.   

Fed Chair Jerome Powell will address a symposium in Wyoming this Friday. Powell is set to speak from 10 a.m. E.T. in front of central bankers, policymakers, and others, continuing the tradition of Fed chairs delivering keynote addresses at Jackson Hole.