Trump’s Shift in Rhetoric Spurs Enthusiasm in Crypto Derivatives Market

The current rise of Bitcoin to $94,000, following conciliatory comments by U.S. President Donald Trump regarding tariffs and the head of the Fed, was accompanied by an increase in funding rates and open interest (OI) on perpetual contracts.

According to Velo, the total volume of open positions soared by 10% to $17.83 billion.

The pace was the highest since March 2, when Trump mentioned XRP, ADA, and SOL as potential candidates for inclusion in the crypto reserve alongside Bitcoin and Ethereum.

There was a sharp exit of funding rates from negative to positive territory, facilitated by a wave of liquidations of positions, most of which were shorts.

Ethereum

The chart for the second-largest cryptocurrency by market capitalization showed similar trends. OI jumped by ~16% to $6.60 billion, the largest increase since November 27.

Bitcoin is expected to continue appreciating if threats to the Fed’s independence persist, according to Standard Chartered.

Previously, BitMEX co-founder Arthur Hayes predicted that the price of digital gold would rise above $100,000 due to the U.S. Treasury’s buyback of government bonds.