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Bitcoin remains the center of attention in the crypto market after falling despite the U.S. government's announcement of a strategic BTC reserve. Volatility has entered the BTC ecosystem, with the price currently pegged at $89,092, down by 0.7% in 24 hours. According to Matthew Sigel, VanEck’s Head of Digital Assets Research, the Open Interest outlook for Bitcoin presents a bullish setup for the coin.
Bitcoin gears up for 38% rally
According to the chart shared by Sigel, spot market bulls are currently holding the line amid intense volatility. He hinted at the Open Interest trend, which last fell to its current low level when Bitcoin traded at around $64,000.
Gamza KhanzadaevAccording to data from CoinGlass, Bitcoin's open interest in the futures market is down 1.02% in 24 hours. As of press time, 559,270 BTC have been committed by futures traders, with a market value of $49.96 billion.
Beyond this short-term slump, Bitcoin's open interest has nosedived generally from its peak last year. This trend is troubling, considering more institutional investors are now gaining exposure to the digital currency.
Among those exposed to Bitcoin is Strategy, which recently rebranded its corporate identity from MicroStrategy. Others are Semler Scientific and Metaplanet Inc.
Big push for BTC price ahead
Despite the current outlook on the Bitcoin market, many are optimistic that the coin’s price will pick up momentum soon. Samson Mow believes the strategic reserve will fuel more Bitcoin purchases in the future, against the current notion that only seized BTC will make up the stockpile.
The VanEck executive’s update shows the price of Bitcoin may pick up pace and rally as high as 38% if history plays out again. The coin is battling to flip the $90,000 price mark as a sustainable support.
Beyond the reserve outlook, the spot Bitcoin ETF also appears to be a major tailwind supporting further growth.
Dan Burgin
Vladislav Sopov