Bitcoin Traders Are Frantically Buying Dips As Open Interest Surges To 380,000 BTC
The majority of the cryptocurrency market did not anticipate Bitcoin’s decline below $16,000 merely a week ago. The response of traders and investors was, however, not as negative as one might believe.
Market participants are actively longing the first coin, without looking back at yesterday’s events, according to on-chain and market data.
The market experienced a spike in open interest on derivatives trading platforms almost immediately after the price fell below $16,000, which was represented in an exponentially rising number of long orders.
The behavior of investors who have their money trapped on the FTX market is the most intriguing aspect of this pattern. Despite the most recent price action, the vast majority of traders who are unable to withdraw money from the renowned exchange are developing exceptionally high risk tolerances and betting nearly all of their portfolios on the growth of the first cryptocurrency.
Unfortunately, the rationale for their choice is entirely psychological because the majority of users think it will be hard to withdraw their money, and the sense of helplessness is what drives people to make unorthodox financial choices.
FTX and FTT scenario – Bitcoin
To conclude that the cryptocurrency market slump brought on by the FTX and FTT scenario has ended is premature, though.
A number of market participants, including funds like Galaxy Digital, Sequoia Capital, and DAOs like TrueFi, are at extremely high risk due to the bankruptcy of one of the largest cryptocurrency exchanges in the world.
In a few hours, millions of dollars’ worth of SOL cryptocurrency will be released from staking, perhaps producing a market calamity that could trigger yet another market decline for Bitcoin.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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