Bitcoin futures traders added over a billion dollars to Bitcoin Open Interest (OI) after the Fed released its July FOMC minutes yesterday.
Interest Rate Cut in September is Certain!
Some analysts believe the July FOMC minutes confirm the September rate cut.
An increase in Bitcoin OI indicates greater confidence among investors in predicting Bitcoin's price direction, whether up or down.
However, while data shows that investors are divided on whether the Bitcoin price will rise or fall, a new assessment came from 10X Research founder Markus Thielen.
“The vast majority of FOMC members supported a September rate cut, with some members even viewing a July rate cut as a reasonable option,” Thielen said, noting that a September rate cut was almost certain, according to the Fed's minutes.
Going Long on Bitcoin and Short on Ethereum Will Be a Strategic Move!
Thielen also said that Bitcoin had increased by 4% following the FOMC minutes and that he expected an increase in BTC.
At this point, Thielen stated that Bitcoin broke out of the symmetrical triangle with its rise yesterday and that this situation indicates further upward potential for BTC.
Stating that data points to bullish potential in Bitcoin, Markus Thielen said that opening a long position in Bitcoin and a short position in Ethereum could be a simple strategy to take advantage of Bitcoin's increasing dominance.
“Bitcoin is up 4% since yesterday, which is in line with our tactical bullish outlook.
BTC made a decisive move upwards by breaking out of the symmetrical triangle pattern, suggesting potential for further upside.
Bitcoin funding rate is back at a premium, supported by a $1 billion increase in open interest.
Given these positive dynamics in Bitcoin, a simple strategy would be to open a short position on Ethereum and a long position on BTC, as Bitcoin's dominance continues to grow and the open interest share consistently diverges in favor of BTC.
*This is not investment advice.
