Digital asset derivatives trader Gordon Grant has noted increased buying activity on the Bitcoin derivatives market ahead of today’s White House Crypto Summit. He argued that the surge in market activity was driven by expectations of potential market-moving announcements at the event.
The crypto trader also highlighted that BTC had formed a support level at its last test of $82,000. He believes that increased buying pressure has driven up both open interest and funding rates.
Bitcoin derivatives market experiences surge in activity
🚨 CMC News: Traders are increasing their positions in the Bitcoin derivatives market ahead of the White House Crypto Summit, driven by expectations of potential market-moving announcements.https://t.co/qxU0s4reYy
— CoinMarketCap (@CoinMarketCap) March 7, 2025
Grant observed that traders were increasing their positions in the Bitcoin derivatives market in the wake of the White House Crypto Summit on March 7. Traders were driven by expectations of potential volatile announcements at the summit today. Grant noted that the recent surge in open interest and leveraged positions suggested that traders were setting up positions for volatility.
The crypto derivative enthusiast revealed that there had been mounting buying pressure following BTC’s recent price test at $82,000. Grant argued that it led to a re-establishment of leveraged positions, which drove up both open interest and funding rates. He explained that there appeared to have been a more persistent or determined bid since BTC’s last test of $82,000.
The crypto trader also acknowledged that the options market showed signs of increased liquidity and volatility. He noted that implied volatility had spiked to 90% for overnight options, 70% for contracts expiring within a week, and 60% for those maturing at the end of March. Grant argued that the rise in the return of liquidity led to buoyancy in the market, open interest, boosting prices and funding rates.
CryptoQuant’s Head of Research, Julio Moreno, highlighted that sentiment in the futures market had shifted as well. He noted that perpetual futures market funding rates had risen from -0.01 to +0.009 after a statement about the Strategic Crypto Reserve. Moreno also argued that the change reflected traders’ willingness to pay to hold long positions and showed expectations of higher Bitcoin prices.
Bitcoin futures also saw a significant surge in its 24-hour open interest from -22,800 to 10,800 in just two days. Moreno argued that the shift was driven by traders positioning themselves ahead of the White House Crypto Summit. The shift was also attributed to the growing speculation about an official announcement regarding the SCR.
“In a sense, it’s as though we’ve seen some more extreme tides of ebbing and receding liquidity, and now that tide has come back, bringing newfound buoyancy to prices, open interest and funding, as well as more bid tone for volatility.”
– Gordon Grant, Cryptocurrency derivatives trader
Bitcoin exchanged hands as high as $92,804.94 in the past 24 hours, driven by anticipation of today’s White House Crypto Summit. The digital asset has traded between $87,599.07 and $92,804.94 in the past 24 hours. BTC is currently trading at $89,050 at the time of publication, marking a 2.75% decrease since yesterday and an 11.63% increase over the past 7 days.
The virtual currency’s 24-hour trading volume plummeted by over 20% to $58.61 billion, while its market capitalization grew by 2.52% to $1.76 trillion. Coinalyze data showed that the total Bitcoin futures open interest currently stood at $25 billion, with liquidations totaling $217.7 million in the last 24 hours. $129 million of those were from long positions, and roughly $89 million were from short positions.
Traders brace for NFP report and White House Crypto Summit
Trump is expected to introduce tax breaks for U.S.-based digital assets, possibly including Bitcoin as part of a national crypto reserve. Yesterday, the president released an executive order to establish a Strategic Bitcoin Reserve and a U.S. digital currency stockpile.
Bitcoin derivatives traders are also eyeing today’s upcoming U.S. labor market data. The February Non-Farm Payroll (NFP) report will be released in about 2 hours, a key indicator that could impact the BTC derivatives market.
The ADP Employment Report estimates that the U.S. labor market weakened in February, with only 77,000 new jobs, compared to 143,000 in January. Reuters projected a stronger-than-expected 160,000 new jobs.
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