Bitcoin Leads Long Position Recovery Amid Interest Rate Speculation

The cryptocurrency derivatives market has seen Bitcoin (BTC) regain dominance in long positions, despite undergoing substantial liquidations earlier in the day, totaling over 500 billion KRW. This renewed buying activity is largely driven by expectations surrounding an interest rate cut anticipated in October. Among other standout performers, tokens backed by positive developments—such as Hype (HYPE)—have been at the forefront of strong buying momentum.

Bitcoin Long Positions Regain Ground

As of 9 a.m. on October 23 (local time), BTC's long-to-short ratio showed a decisive shift, according to data from Coinglass. On a four-hour timeframe, 52.51% of positions leaned toward long buys versus 47.49% short, marking significant progress compared to the previous day's 48.9% dominance in long positions. The long/short ratio jumped to 1.1057, surpassing the critical threshold of 1, up from 0.8734 recorded at 5 p.m. the previous day.

Despite modest price movements, BTC traded at $108,319, representing a 0.07% increase from the prior day as it approaches the psychological $110,000 mark. By 12:20 p.m., the long position percentage rose further to 53.55%, with shorts trailing at 46.45%, signaling growing market optimism for Bitcoin.

Ethereum Sustains Buying Momentum

Ethereum (ETH), although experiencing a 1.11% price decline compared to the previous day, maintained a favorable long position ratio at 51.03% versus 48.97% short. This modest shift eased selling pressure, providing room for more buying activity among investors. The surge in long positions contrasts with the strong selling sentiment observed across numerous altcoins over the previous day. ETH's resilience has reinforced expectations of continued interest among traders in major altcoins.

Hype and Chainlink Attract Institutional Interest

Hype (HYPE) led the altcoin charge with the most dominant long position ratio at 54.71%, supported by bullish developments. Notable among them was Hyperliquid Strategies' strategic effort to secure $1 billion in operating capital, which included filing an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). This ambitious announcement pushed HYPE's price up by 8.31% within 24 hours.

Chainlink (LINK), meanwhile, faced a 2.24% decline in its price but attracted substantial attention from institutional players. Reports indicated that $160 million worth of LINK tokens were accumulated during recent market activity. Institutional interest boosted LINK's long position ratio to 54.18%, highlighting consistent buying sentiment despite the price dip.

Altcoins Show Steady Buying Pressure

Amid predominantly negative price movements, multiple altcoins displayed strong long position ratios exceeding the critical 50% threshold, a testament to sustained investor confidence:

• Solana (SOL): Price drop of -2.12%, long position ratio at 52.14%.
• XRP (XRP): Price dip of -2.13%, long positions reached 53.25%.
• Binance Coin (BNB): Positive movement of +1.27%, long ratio at 51.29%.
• Dogecoin (DOGE): Decline of -1.89%, long position ratio at 53.31%.
• Sui (SUI): Decline of -3.63%, long position at 51.71%.
• Eternity (ENA): Price drop of -2.68%, long positions reached 51.09%.

Despite broader market corrections, these altcoins demonstrated compelling buying activity, especially during short-term trading windows such as five-minute intervals. XRP, BNB, DOGE, HYPE, and ENA notably saw short-term momentum in favor of buyers, underscoring strong investor confidence even amidst volatility.

Outlook for the Crypto Market

Bitcoin’s leadership in long positions, coupled with rising interest in tokens benefiting from positive news and developments, points to growing market optimism. Traders, however, must tread cautiously as crypto markets remain sensitive to economic factors such as interest rate changes. While the shift toward long positions indicates bullish sentiment, evolving market dynamics call for vigilance in investment strategies.