 Binance BTC open interest jumps $500M hours after ‘favorable’ US inflation data 
2025-01-16
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Cryptocurrency exchange Binance saw a significant jump in Bitcoin Open Interest (OI) volume after the US Consumer Price Index results gave crypto market participants hope that further rate cuts may occur in 2025.
“This news brought smiles to the faces of crypto investors, signaling a positive shift for risk-on markets. As the data painted a favorable macroeconomic picture, the crypto market experienced a strong rally,” CryptoQuant contributor Burakkesmeci said in a Jan. 15 analyst note.
Bitcoin OI spikes following bullish CPI data
Burakkesmeci said “within two hours” of the US Consumer Price Index report being released — which showed lower-than-expected core inflation in December — Binance’s Bitcoin OI spiked by 3.30%, reaching a total of $10.96 billion.
The metric tracks the total number of unsettled Bitcoin derivative contracts like options and futures.
At publication time, Binance Bitcoin OI stands at $12.20 billion, as per CoinGlass data.
A rise in Bitcoin OI signals increased market participation and interest in the asset — typically a bullish sign for traders.
The total Bitcoin OI across all the major crypto exchanges is $63.19 billion, an increase of almost $3 billion over the past 24 hours.
After the CPI data was released, Bitcoin’s BTCUSD price also jumped from the $96,000 price level to just over $100,500 before retracing down to $99,587 by the time of publication, as per CoinMarketCap.
Overall crypto market sees uptick in bullish sentiment
Burakkesmeci explained that during bull markets, it’s “crucial” for spot trading to have support from the “futures side.” 
Meanwhile, a crypto market sentiment tracker, the Crypto Fear & Greed Index, has risen up 5 points from the previous day. 
The index measures Bitcoin and broader crypto market sentiment and clocked a “Greed” score of 75.
Despite Bitcoin’s recent rally, some analysts remain cautious about its price in the short term, though they said current levels still present a solid buying opportunity.
On Jan. 14, Fundstrat Capital’s chief investment officer said, “I don’t think anyone is going to lose money buying here at $90,000. If they’re trying to time this, maybe they get lucky, and it goes to $70,000.”
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.