🕊️ Intense network activity — record number of new addresses
When we talk about new addresses in a cryptocurrency network, it’s like new students arriving at school. The more new addresses there are, the more participants join, which usually signals renewed interest and market revival. This year, their number reached the highest level in the past 12 months — a sign that the market is waking up after a quiet period.
What is open interest and why is it important?
Open interest is the total number of open positions in the market — how many contracts or trades are currently “in play.” Imagine it as the number of students currently sitting at their desks learning — the more there are, the more active the process. When open interest rises, it means traders are confident in market moves and ready to take risks.
In other words, speculative demand pushes prices up: open interest has grown, and traders are actively building long positions.
Long positions — betting on growth
Traders adding long positions are betting that the asset’s price will go up. It’s like betting on your favorite football team to win — if the prediction comes true, you win. The active accumulation of such positions shows that most participants expect prices to rise.
Volatility and inflation data expectations
Volatility is the amplitude of price swings — how much and how often the asset’s value “jumps.” It usually increases before major news releases, such as US inflation data. These numbers can affect monetary policy and Federal Reserve decisions, which in turn influence currency rates and asset prices.
If inflation exceeds expectations, it may increase pressure on the dollar and raise interest rates, which typically isn’t great for risky assets but can strengthen gold and some cryptocurrencies as “safe havens.” If inflation comes in lower than expected, trends may reverse — markets react quickly, and movements can be sharp.
Bottom line: The market right now looks like a school hallway before the bell — lots of new faces (addresses), active students (trading positions), and excitement before an important lesson (inflation data).
💡 For those who prefer a classic approach — now is the time to stay alert and carefully choose where and how to hold your investments.
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