Satoshi Stacker is an analyst with over 141,000 Twitter followers. This crypto specialist recently did an analysis on the bitcoin (BTC) market. He mostly talked about the OI bespoke indicator which shows the total number of futures contracts that have not been settled. Here is Satoshi Stacker’s analysis.
Bitcoin (BTC) traders in full preparation
According to a publication on Satoshi Stacker’s Twitter on October 22, traders are gearing up for a “big moveon the bitcoin market. The analyst showed, through a chart from Glassnode, the open interest of the flagship crypto. He commented on the chart saying, “Open interest (OI) is the total number of futures contracts that market participants hold at the end of the trading day“. “It means people are getting ready for a big move“, he added.
The graph presented by Satoshi Stacker indicates that the OI is near its highest level. It must be said that this indicator reveals where the money is circulating by highlighting the liquidity and interest of the market. While the OI is reaching its all-time high, the volatility of bitcoin (BTC) is getting lower and lower. The latter has also fallen below that of the NASDAQ and S&P500 indices, a first since 2020.
Low volatility in the BTC market: what is a problem?
BVIN, which is CryptoCompare’s BTC volatility index, was around 100% in September. But, currently, it has risen to 65.5%. According to several experts, the lower volatility of bitcoin could pose a serious problem. Indeed, it could lead to increased market sales if it is accompanied by a drop in trading volumes.
Yassine Elmandjr, an analyst at Ark Investment Management, recently made this observation. He stated : “Bitcoin’s low volatility isn’t necessarily a good thing, especially if volume is low“. He recalled that at the end of 2018, BTC was trading around $6,000. But it took low trading volume for the token to drop to $3,000.
Following the Fed raising US interest rates, crypto prices crashed. The situation worsened when several other central banks decided to do like the Fed to overcome inflation. In this context, more and more consumers stopped investing in risky assets, which contributed to the drop in volatility.
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