Bitcoin Futures Open Intest Surge shows investors’ trust in trade transactions, Powell

As Bitcoin (BTC) and Ether (ETH) recovery rally gained momentum on Tuesday, the persistent futures market saw a more pronounced increase in open interest, pointing to growing investors’ trust as the Trump administration dialed trade collateral, anti-fedrhetoric.

According to Coindesk data, BTC, the leading cryptocurrency by market value, rose $94,000 by 6.79% for the first time since March. This is the most important daily percentage gain since April 9th. Ethereum blockchain’s ether token jumped to 11% to $1,175. This is the best performance since April 2nd.

The rally came when US Treasury Secretary Scott Bescent discussed escalations in US-China trade tensions and President Donald Trump said tariffs on Chinese goods would fall significantly from 245% from now on. Trump further said he had no intention of firing Federal Reserve Chairman Jerome Powell.

The price surge was characterized by traders deploying money for permanent futures trading in major offshore exchanges, as evidenced by the greater increase in interest in the binan, bibit, OKX, delibit, and major on-chain permanent decentralized exchange exchange hyperliquid.

According to data source VELO, the dollar value of open interest in cumulative concepts, or number of active bets in BTC permanent futures, increased by 10% to $17.83 billion. This is the biggest day increase since March 2, when Trump mentioned XRP, ADA and SOL as potential candidates for a strategic digital asset reserve that holds Bitcoin and ether as cores. The administration later said Bitcoin would continue to be seized as a sanctuary under enforcement action.

“Open Bitcoin profits surge faster than prices, and most positions come from vinance,” said Joao Wedson, CEO of Alphractal Research.

The price surge could have been aided by a short slit or a short permanent futures bet rewind. The funding rate was negative about 24 hours ago, meaning a bias in shorts.

Ether’s supposed open profit jumped to nearly 16%, the largest daily increase since November 27th, to $6.6 billion.

With prices rising, the increase in open profits is said to confirm bullish momentum. In other words, BTC and ETH can continue to rise.

The bullish long position bias is also evident from the moderately positive annual permanent funding rates ranging from 5% to 10% per year for BTC and ETH.

The funding rate charged every eight hours is a payment exchanged between traders who hold the strengths of a permanent future and short positions. They are designed so that the contract price stays near the spot price of the underlying asset.

A positive funding rate means that traders are more prone to being willing to pay to hold longer positions. Therefore, it is considered a sign of bullish emotions. But excessively high funding rates can show overcrowded or bullish speculative enthusiasm, but that’s not the case for now.