Bitcoin Futures Surge Amid Inflation Speculation, CZ Release

The Most Important Points

• Bitcoin Futures on Binance rose from 85,000 to 90,000 BTC in one week.
• Speculators expect high volatility due to upcoming U.S. inflation data and the release of Changpeng Zhao (CZ).
• The Bitcoin price could fluctuate significantly, especially between September 27 and 29.
• Key price levels for potential liquidations are at $62,000 and $65,000.

Rising Bitcoin Futures on Binance

Last week, Binance saw a significant increase in open Bitcoin Futures contracts. The number of open positions (Open Interest, OI) rose by almost 7%, reaching 90,000 BTC. This suggests that speculators are increasingly placing bets on the Bitcoin price, particularly in light of upcoming economic events in the U.S. and the release of former Binance CEO Changpeng Zhao (CZ).

Why Are Bitcoin Futures Rising?

An important factor driving the increase in open positions is the release of U.S. PCE (Personal Consumption Expenditures) data. This data provides insights into the inflation rate and could offer clues as to how the U.S. Federal Reserve (Fed) will shape its interest rate policy in the future. Many traders expect that this data could lead to increased volatility in the Bitcoin market.

Additionally, CZ, the former CEO of Binance, is set to be released from custody on September 29. This has fueled speculation about potential impacts on the crypto market, as Binance plays a central role in cryptocurrency trading.

Risk of Liquidations

With the rise in open positions, the risk of liquidations also increases. Liquidations occur when traders are forced to close their positions due to price movements in order to limit losses. According to data from Coinglass, key liquidation levels are at $62,000 and $65,000. Should the Bitcoin price break through these levels, both short and long positions could be massively liquidated.

Bitcoin Price Development

At the time of writing, the Bitcoin price is below $64,000 and has failed to break through the 200-day moving average (MA) at $63,900. Some analysts, such as trader Daan Crypto, see a breakthrough above this level as a potential turning point for the Bitcoin price. If this happens, it could trigger a so-called “Short Squeeze,” where short positions are forced to close their bets, potentially driving the price further upward.

Our Assessment

The coming days could be crucial for the Bitcoin price. The combination of economic data and the release of CZ creates an environment of heightened uncertainty and volatility. Traders should be aware of the risks, particularly with regard to potential liquidations at the mentioned price levels. It remains to be seen whether the Bitcoin price can break through the 200-day moving average and start a new upward trend.