- Bitcoin’s value rose to $30,000 a week after a drop to $24,700 following Fed Chairman Powell’s June interest rate decision.
- Investments in Bitcoin derivative products significantly increased in the second half of June, with open positions in Bitcoin recording a 12% increase in the second quarter, reaching $8 billion.
- Altcoins, however, have not shown a recovery, with open positions in altcoins, which fell 40% between June 9-14, still hovering at some of the lowest levels in recent years.
Bitcoin Bounces Back After Interest Rate Decision
Following the Federal Reserve Chairman Powell’s decision on interest rates in June, Bitcoin’s value plummeted to $24,700. However, the leading cryptocurrency managed to recover within a week, climbing back to the $30,000 mark. This recovery, however, was not mirrored by altcoins, which struggled to keep pace with Bitcoin’s rebound.
Investments in Bitcoin Derivatives Surge
According to a study by Kaiko, a well-known provider of critical data on cryptocurrencies, investments in Bitcoin derivative products saw a significant uptick in the second half of June. Open positions in Bitcoin, which represent the total number of outstanding derivative contracts, recorded a 12% increase in the second quarter, reaching a total value of $8 billion. This figure is the highest recorded since the FTX crash.
Altcoins Struggle to Recover
Despite the surge in Bitcoin investments, the same study indicated that altcoins have been unable to show a similar recovery. Open positions in altcoins, which experienced a 40% drop between June 9-14, continue to hover at some of the lowest levels seen in recent years. For instance, the total open position value of eight altcoins (ADA, SOL, MATIC, FIL, SAND, MANA, ALGO, and AXS), which were identified as investment contracts in the SEC’s lawsuits against Binance and Coinbase, lost 30% of their value in the second quarter and currently stand at approximately $480 million.
Among these altcoins, ADA, SAND, and ALGO experienced the most significant declines in open positions. The decrease in open positions for these three altcoins was over 40% in the second quarter. Furthermore, many altcoins were unable to match Bitcoin’s sharp upward price movement last night, with tokens continuing to trade at the same levels.
