Traders Position for Potential Market Moves as White House Crypto Summit Approaches

Bitcoin's derivatives market is experiencing strong buying interest as traders position themselves before White House Crypto Summit. Market participants are preparing for potential market-moving announcements that could affect cryptocurrency prices - based on Block's reporting.

Gordon Grant, a cryptocurrency derivatives trader, observed a persistent increase in buying pressure since bitcoin recently tested the $82,000 price level. This buying pressure may be connected to traders re-establishing leveraged positions.

"Since Bitcoin's last test of $82,000, there appears to have been a more persistent or determined bid to this tape," Grant told The Block. This activity has led to increased open interest and higher funding rates in the market.

Bitcoin markets are seeing a resurgence in liquidity, bringing renewed strength to prices. Options market implied volatility has reached notable levels:

• 90% for overnight options
• 70% for contracts expiring in a week
• 60% for those maturing at the end of March

Grant described the situation as "extreme tides of ebbing and receding liquidity," with the tide now returning and bringing "newfound buoyancy to prices, open interest and funding, as well as a more bid tone for volatility."

Julio Moreno, CryptoQuant Head of Research, noted shifting sentiment in the futures market. "We are seeing a recovery in the perpetual futures market funding rates, which increased from -0.01 before the Trump message regarding the Strategic Crypto Reserve (SCR), to as high as +0.009 after the message," Moreno said.

The 24-hour open interest change for bitcoin futures has also turned positive as prices recovered, moving from -22,800 to as high as 10,800 in just two days. The upcoming White House Bitcoin Summit has heightened market expectations about a possible official announcement regarding the Strategic Crypto Reserve.

President Trump signed an executive order on March 6 establishing a US Strategic Bitcoin Reserve and National Digital Asset Stockpile. The order states "there is a strategic advantage to being among the first nations to create a strategic Bitcoin reserve" due to Bitcoin's fixed supply. The reserve will initially include only BTC already owned by the US government.