Bitcoin’s Bullish Momentum Amid Fed’s Rate Pause
Bitcoin (BTC) shows bullish potential after the Federal Reserve paused interest rate hikes. Research from CryptoQuant suggests this macroeconomic shift, combined with crypto derivatives trends, could drive BTC toward new highs.
Historical Trends and Market Analysis
Historically, Bitcoin performs well during Fed rate pauses. The Federal Open Market Committee (FOMC) unanimously decided to hold rates steady. CryptoQuant notes this could create a bullish environment for BTC, especially with signs of liquidation exhaustion and declining open interest.
Binance Open Interest and BTC Price Movement
Binance data reveals a divergence between BTC’s price and open interest (OI). While BTC found support above $104,000, OI hit lower lows. This deleveraging, alongside the Fed’s pause, may strengthen Bitcoin‘s upward momentum.
Short Squeeze Potential and Market Liquidity
CoinGlass reports growing short squeeze risks near $106,000. However, falling below $104,000 could trigger a rug pull due to order book spoofing. The Derivatives Risk Index (CDRI) remains neutral but shows rising liquidation risks.
