Bitcoin – Why the $2B Open Interest jump could be a bearish start for BTC
Bitcoin (BTC) recently experienced a significant surge, surpassing the $105k resistance level after a 1.62% intraday move. This shift in market dynamics was fueled by a substantial $80 billion inflow into Bitcoin, boosting its market cap to $2.12 trillion. The surge is attributed to a growing risk appetite among investors and the wider availability of macro liquidity, as indicated by the decrease in the Secured Overnight Financing Rate (SOFR) to a multi-year low of 3.92%. The lower SOFR suggests cheaper borrowing costs for banks, which can lead to increased liquidity in the market.