There is now a significant amount of Bitcoin futures activity, which is a sign that traders are looking for risk protection. Given the high level of volatility in the macro environment at the moment, this is understandable. However, it seems that there is a greater awareness of potential threats from the cryptocurrency industry. Despite being in a bear market, the price of Bitcoin (BTC) has remained stable at roughly $19,000.
Cryptocurrency traders are attempting to minimise risks related to the volatile crypto market.
There is now a significant amount of Bitcoin futures activity, which is a sign that traders are looking for risk protection. Given the high level of volatility in the macro environment at the moment, this is understandable. However, it seems that there is a greater awareness of potential threats from the cryptocurrency industry. Despite being in a bear market, the price of Bitcoin (BTC) has remained stable at roughly $19,000.
Very High Open Interest for Bitcoin Futures
The open interest in Bitcoin futures is presently close to its peak. This indicates that traders are quite concerned about their positions and thus wish to protect assets from potential hazards. Crypto influencer Satoshi Stacker claims that the huge open interest indicates that people are getting ready for a significant Bitcoin surge. This is true despite a tiny number of liquidations.
Liquidating Long Term Holders
The price of bitcoin is currently stagnant between $19,000 and $20,000, however. The price of Bitcoin as of this writing is $19,151, up 1.79% over the previous 24 hours, according to market monitoring site CoinGabbar. Long-term investors, meanwhile, have made the decision to sell their crypto holdings. Crypto Quant claims that since June, the short-term investors have maintained a solid position. Long-term investors, though, are what have been driving down prices.
On the other hand, when the difficulty rises as a result of the rising hashrate, miner profitability is dropping. Hashrate is the total amount of computing power that cryptocurrencies like Bitcoin use to mine new coins and carry out transaction processing. The hashrate of Bitcoin is currently at an all-time high, making it harder to trade during a down market.