What’s Next for Bitcoin (BTC)? Post-August Sell-Offs Plunge to a 5-Month Low!

  • Bitcoin futures open interest has hit a 5-month low.
  • Data from Kaiko indicates a drop to the lowest levels since the Terra crash.
  • The impact of Grayscale’s decision will be seen in the medium term and could signal an early end to bear markets.

The final week of August started promisingly for Bitcoin, but the SEC’s ETF rejections were priced in early, leading to profit-taking and a drop in BTC price. Investors are currently viewing each peak as an opportunity for small profits, with a strong rally not in sight. However, the market sentiment remains neutral.

Bitcoin Data at a 5-Month Low

The cryptocurrency market is showing signs of fatigue, as evidenced by the declining open interest in Bitcoin futures. According to a recent report from Glassnode, open interest has fallen to a 5-month low of $2,796,429,005. This contraction in futures activity is causing despair among investors, especially as BTC struggles to reach $27,000.

Despite the overall gloomy trend, Grayscale’s victory against the SEC on August 29 brought some cheer to the market. However, this regulatory win has not yet signaled a permanent shift in sentiment, given the ongoing struggles in the spot market.

Current Bitcoin Commentary

Kaiko’s data suggests that open interest in Bitcoin futures contracts is beginning to recover, but it has not yet risen from the lows seen following the Terra network crash in May 2022.

Traders and analysts closely monitor futures open interest to gauge market sentiment. The decline in open interest could indicate a shift in investment strategy, as institutional traders may be reassessing their positions in light of these developments. According to experts, the buzz created by Grayscale’s victory is a promising sign. However, the cautious market stance will not lift unless other positive triggers, such as the long-awaited approval of a Bitcoin ETF, emerge.

Decisions on ETF applications will be announced on October 15. An early approval by the SEC would be a big surprise. However, if the Fed announces an interest rate cap at its September 20 meeting and the SEC approves several ETFs next month, it could signal the end of bear markets. As we have extensively explained before, the Grayscale decision does not seem reversible and significantly increases the possibility of ETF approval. Bloomberg experts give a 75% chance of ETF approval this year and a 95% chance next year.

Conclusion

The cryptocurrency market is currently in a state of caution, with Bitcoin futures open interest at a 5-month low. The impact of Grayscale’s victory against the SEC is yet to be fully realized. However, the potential approval of Bitcoin ETFs could bring about a positive shift in market sentiment.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin Halving to Spark Supply Shock, Says Samson Mow – Omega Time Ahead?

Influential Bitcoin advocate Samson Mow offers a bullish outlook on Bitcoin's future, citing the upcoming halving and growing ETF inflows as key drivers. Here's why he believes the current market turbulence could lead to a surge in BTC price.

Bitcoin Price Plunge Continues: Analysts Predict Further Drops to $59K

Bitcoin's rollercoaster ride continues, with experts weighing in on where the bottom might lie. Get the latest price analysis, predictions, and insights into what these movements could mean for your crypto portfolio.

Bitcoin and Altcoins Face Correction Risk as Rate Cut Expectations Decline

Discover why Bitcoin and other cryptocurrencies may be on shaky ground, as economic indicators point to a potential market correction. Get expert insights on shifting market dynamics and what it could mean for crypto investors.

Bitcoin Price Outlook Dims as Crypto Stocks Slump, Peter Schiff Raises Doubts

Get the latest insights on the bearish trend in crypto markets, Peter Schiff's skepticism, and the impact on Bitcoin's price potential.

Litecoin Price Analysis: LTC Shows Bullish Signals Against BTC, Could a Run Be Imminent?

Get the latest insights on Litecoin's price trajectory, including key support/resistance levels and expert analysis for informed trading decisions.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Will WLD See $11 Again? Current WLD Analysis

WLD coin's daily technical analysis provides direction for long-term traders by indicating support and resistance levels.

Where Will NEO’s Rally Continue? Updated NEO Analysis 15 April

NEO gained strength from the support levels determined in the previous analysis and rose to its current price of $22.66, targeting $25.

Is DYDX Ready to Start a New Rally? Latest DYDX Analysis 15 April

Following its recent fall, DYDX rebounded strongly to $2.28, and it is indicated that if it can sustain 3-day candle closes above this resistance level, the upward trend may continue.

Is Solana in a Long-Term Buy Zone? Current SOL Analysis 15 April

Following its recent decline to $118, Solana surged back to $145 with robust purchases; for long-term investors, the $132.40 to $121.36 range is seen as potential buying areas.

Will ARB Start Its Ascent? Latest ARB Analysis 15 April!

According to the analysis of ARB coin, staying above $0.98 could set it on a path to reach $1.90.
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Bitcoin Halving to Spark Supply Shock, Says Samson Mow – Omega Time Ahead?

Influential Bitcoin advocate Samson Mow offers a bullish outlook on Bitcoin's future, citing the upcoming halving and growing ETF inflows as key drivers. Here's why he believes the current market turbulence could lead to a surge in BTC price.

Bitcoin Price Plunge Continues: Analysts Predict Further Drops to $59K

Bitcoin's rollercoaster ride continues, with experts weighing in on where the bottom might lie. Get the latest price analysis, predictions, and insights into what these movements could mean for your crypto portfolio.

Bitcoin and Altcoins Face Correction Risk as Rate Cut Expectations Decline

Discover why Bitcoin and other cryptocurrencies may be on shaky ground, as economic indicators point to a potential market correction. Get expert insights on shifting market dynamics and what it could mean for crypto investors.