Bitcoin and Ethereum on Bullish Trajectory, Open Interest Spikes

Bitcoin and Ethereum on Bullish Trajectory, Open Interest Spikes

By: Eliza Bennet

Analysing the crypto market trends, Bitcoin and Ethereum are on a bullish trajectory with notable changes in their futures and options open interests. Open interest, the sum of unsettled derivative contracts, is an integral metric for assessing market sentiment and health. February witnessed a considerable increase in Bitcoin's open interest, growing from $16.41 billion to $22.69 billion suggesting a bullish market sentiment. Meanwhile, Ethereum's surge to a 22-month high of $3,130 sparked increased interest in Layer-2 decentralized finance coins (DeFi) and is predicted to soon reach $3,500.

Traders are linking Bitcoin's current surge to $57,000 with the upcoming Bitcoin Halving event, predicting a significant bull run post this event. Similarly, Ethereum's bullish momentum seems to be supported by Ethereum Spot ETF rumours.

Despite these positive signals, analysts formulate their forecasts cautiously. They warn that there might be a short-term pullback before the bull run, which could be the last great investment opportunity in this cycle. Thinkers speculate that Bitcoin could drop to $48,000 before its surge. Any close below $55,600 could trigger a considerable downward correction.

As the conflicting expectations play out in these trading activities, the market could witness heightened volatility. Overall, while the market's immediate implication is a potential increase in volatility, a strong bullish sentiment tempered by short-term caution characterises the current climate.

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