Following the release of favorable U.S. Consumer Price Index (CPI) data, Bitcoin’s price surged, briefly surpassing the $100,000 mark before stabilizing around $99,000. This positive inflation report has bolstered investor confidence, leading to increased activity in Bitcoin derivatives.
On Binance, the world’s largest cryptocurrency exchange by trading volume, Bitcoin’s Open Interest (OI)—which measures the total number of outstanding derivative contracts—rose by approximately $500 million within two hours of the CPI announcement, marking a 3.3% increase to reach $10.96 billion.
This uptick in OI suggests heightened market participation and a bullish outlook among traders, as they anticipate potential interest rate cuts by the Federal Reserve in response to the cooling inflation. Such monetary policy shifts are generally seen as favorable for riskier assets, including cryptocurrencies.
The broader cryptocurrency market mirrored Bitcoin’s positive movement, with major digital assets experiencing notable gains. This trend reflects growing optimism among investors regarding the macroeconomic environment and its potential impact on the crypto sector.
