caueconomy
Futures market appears to guide current price rise đĽ
As we look at the on-chain activity through the number of active addresses on the network, we see that it remains low in a downtrend. On the other hand, prices rise as new contracts are opened in the futures market. Expectations of an improvement in macro sentiment lead short-term bettors to build positions in the futures market (Open Interest), betting on the momentum gain that could channel prices higher. How sustainable is a futures-led rally? This is the big question, short-term speculators change positions quickly and are sensitive to changes in general sentiment. Data such as US inflation coming out this Wednesday could either make or break the current bullish structure entirely. Directional bets at this time, on the cusp of important macro data are high risk, short term can change direction fast so it is important to be able to manage risk/allocation at this time.