Cryptocurrency exchange Binance experienced a sharp rise in Bitcoin Open Interest (OI) following the release of the U.S. Consumer Price Index (CPI) report, which showed core inflation for December was lower than anticipated. The data has bolstered hopes among crypto investors that further rate cuts could materialize in 2025, providing a favorable macroeconomic environment for digital assets.
CryptoQuant analyst Burakkesmeci highlighted the immediate market reaction, noting a 3.30% increase in Bitcoin OI on Binance within two hours of the CPI data release. This jump pushed the metric to $10.96 billion, signifying heightened market participation. As of Jan. 15, CoinGlass data reported Binance’s Bitcoin OI at $12.20 billion, indicating sustained bullish sentiment.
Bitcoin Open Interest measures the total number of unsettled derivative contracts, such as options and futures, and is often viewed as a barometer of market activity. Across all major crypto exchanges, Bitcoin OI reached $63.19 billion—a $3 billion increase in just 24 hours.
Bullish Sentiment Lifts Bitcoin Prices
The CPI results also propelled Bitcoin’s price, which surged from $96,000 to over $100,500 before stabilizing at $99,587, according to CoinMarketCap. Meanwhile, the Crypto Fear & Greed Index rose five points to a “Greed” score of 75, reflecting a notable shift in market sentiment.
Burakkesmeci emphasized that support from futures trading is critical during bullish phases. This rally aligns with the broader market’s renewed optimism, though some analysts remain cautious about Bitcoin’s short-term trajectory.
Fundstrat Capital’s Chief Investment Officer offered a measured outlook, stating, “Buying Bitcoin at $90,000 is unlikely to result in losses, though a retracement to $70,000 remains possible for those timing the market.”
Also Read: Binance Faces Class Action as US Supreme Court Denies Petition, Upholds Securities Law Application
The Path Forward
As Bitcoin OI and prices show strong upward momentum, the crypto market continues to respond favorably to macroeconomic cues. While optimism grows for long-term gains, traders are advised to remain vigilant of potential volatility in the near term. With CPI data injecting confidence, 2025 could shape up as a pivotal year for Bitcoin and the broader crypto ecosystem.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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