Market sentiment shows hints of defined optimism prior to the long-awaited September U.S. Federal Reserve meeting.
TL;DR
- Bitcoin futures open interest surges $1.2 billion, pushing BTC to $62,000 level.
- Polygon (MATIC) stands out in the sideways market with 12% daily rise prior to changing MATIC token to POL.
Bitcoin Taps $62,000
On August 21, Bitcoin (BTC) suddenly jumped to $62,000. At writing time, it’s trading at $60,808, reflecting a 2% gain in the past 24 hours.
BTC/USDT 1D chart. Source: WhiteBIT TradingView
The price increase was spurred by a rise in Bitcoin’s futures open interest (OI) in the hours after the United States Federal Reserve (Fed) released its July meeting minutes. This may confirm a September rate cut, Markus Thielen at 10x research said in a report.
“A “vast majority” of FOMC members supported a rate cut in September, with several members even considering a July cut as a plausible option,” Thielen further disclosed.
On August 22, Bitcoin futures OI climbed to $31.92 billion, an increase of $1.26 billion compared to previous 12 hours.
Bitcoin futures open interest (USD). Source: CoinGlass
CoinGlass data also reveals that long traders held a slight advantage over short ones over the 12-hour period, dropping hints at potential BTC recovery.
Polygon Gaining Momentum
Bitcoin’s upsurge did not cause any positive shifts in the market, as the majority of cryptocurrencies are trading sideways. The price for Ether (ETH), Solana (SOL), and Ripple (XRP) did not change. Meanwhile, top meme coins like Shiba Inu (SHIBA), Brett (BRETT), and dogwifhat (WIF) added roughly 2% to their prices.
Memecoin market overview. Source: CoinGecko
Amidst the sideway market, Polygon has been among the top outliers on the daily and weekly basis. Since last Friday, MATIC has risen by nearly 20% while growing 12% just in the last 24 hours.
MATIC/USDT 1D chart. Source: WhiteBIT TradingView
The surge came amidst Polygon's update: the protocol will change its native token from ‘MATIC’ to ‘POL’ on September 4, with ratio 1:1 between the assets. According to the Polygon team, the transition aims to make POL the gas and staking token for the ecosystem. It could be expanded to cater to Polygon’s aggregation platform (AggLayer).
Paul Osadchuk
Author
