Bitcoin futures traders in the U.S. reduce $2B in risk ahead of the FOMC decision, while institutional spot buying surges, reflected in Coinbase’s premium increase.
This shift indicates heightened demand despite macroeconomic uncertainties, potentially setting the stage for price stability and growth.
Bitcoin futures traders are reducing risk as anticipation builds for the upcoming FOMC decision. This move has led to a $2 billion drop in open interest, influenced by the Federal Reserve’s policy considerations.
US-based institutional and retail investors are driving spot demand, as reflected by the positive Coinbase premium. This metric shows a BTC price gap between Coinbase and other global exchanges, highlighting heightened US interest in Bitcoin.
Coinbase Premium Indicates Shift Toward US Spot Buying
The reduction in open interest signifies a cautious approach by traders ahead of the Federal Reserve’s decision. The positive Coinbase premium suggests robust US-based spot buying, indicating a shift in market dynamics driven by institutional activities.
This development presents potential financial impacts with BTC’s spot price up 4.1% amid rising demand. Regulatory outcomes remain uncertain, influenced by Federal Reserve’s policy stances, necessitating close monitoring by market participants.
Institutional Interest Mirrors Past Bull Market Phases
Similar increases in the Coinbase premium were noted during previous bull market phases, often tied to institutional interest. Such patterns suggest potential continued price appreciation, highlighting the role of institutional inflows in driving the market.
Experts from CryptoQuant observe that the current market trend lacks signs of overheating, typically seen during speculative phases. This development, driven by institutional actions, could sustain optimistic momentum through 2025 according to historical analyses.
This positive momentum, without signs of overheating, is a typical pattern seen in a rising cycle following a correction, suggesting optimistic movements in the cryptocurrency market in the second half of 2025.” – Crypto Dan, On-Chain Analyst, CryptoQuant
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