Traders are increasing their positions in the Bitcoin derivatives market ahead of the White House Crypto Summit on Friday, driven by expectations of potential market-moving announcements. The recent surge in open interest and leveraged positions suggests that traders are positioning for volatility.
Cryptocurrency derivatives trader Gordon Grant noted that there has been increased buying pressure following Bitcoin’s recent price test of $82,000. This has led to a re-establishment of leveraged positions, which has driven up both open interest and funding rates. “Since Bitcoin’s last test of $82,000, there appears to have been a more persistent or determined bid,” Grant explained .
The options market also shows signs of increased liquidity and volatility. Implied volatility has spiked to 90% for overnight options, 70% for contracts expiring within a week, and 60% for those maturing at the end of March. Grant attributed this rise to the return of liquidity, which has brought buoyancy to the market, boosting prices, open interest, and funding rates.
In the futures market, sentiment has shifted as well. CryptoQuant’s Head of Research, Julio Moreno, pointed out that perpetual futures market funding rates had risen from -0.01 to +0.009 following a statement about the Strategic Crypto Reserve (SCR). This change reflects traders’ willingness to pay to hold long positions, indicating expectations of higher Bitcoin prices.
The 24-hour open interest for Bitcoin futures also saw a significant jump, increasing from -22,800 to 10,800 in just two days, coinciding with a recovery in Bitcoin’s price. This shift has been driven by traders positioning themselves ahead of the White House summit, with speculation growing about an official announcement regarding the SCR.
With the summit just days away, traders are carefully monitoring the event, as any policy changes or announcements could lead to significant market shifts. The recent surge in activity suggests that market participants are bracing for what could be a pivotal moment for Bitcoin and the wider crypto market.
