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3 hours ago
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BULLISH 📈 : CPI Data Boosts Bitcoin Futures Activity and Risk Sentiment

Bitcoin faced another challenging week, maintaining a bearish trend. It is currently around the $69,000 mark, with analysts using on-chain data to predict future movements.

CPI Data and Bitcoin Futures

  • The U.S. Consumer Price Index (CPI) showed a 2.4% inflation rate, exceeding expectations and boosting risk assets like Bitcoin.
  • Following the CPI release, Binance data indicated a sharp increase in Bitcoin futures activity, with Net Taker Volume reaching over $265 million in an hour.
  • Open Interest percent change rose, showing traders are entering new leveraged positions, raising speculative interest but also liquidation risks.

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Short-Term Stress vs. Long-Term Stability

  • On-chain metrics indicate stress among short-term holders, with the STH-LTH MVRV indicator dropping to 0.72, suggesting average unrealized losses of about 44% for short-term holders.
  • Realized cap for short-term holders fell to -$57 billion, indicating significant losses, whereas long-term holders show resilience with a positive realized cap of approximately $35 billion.
  • Increased leveraged long positions and short-term holder losses suggest market instability and potential volatility.

Bitcoin currently trades at $68,929, up 5.06% in the past day.

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