BTC Short Positions at Risk as Macro Week Brings Uncertainty

The Bitcoin market is facing a high-stakes macro week, with three major events set to occur within the next 72 hours. The U.S. Foreign Portfolio Inflows on Monday will be followed by the FOMC Minutes on Wednesday and Japan CPI on Thursday.

According to TradingView, the Federal Reserve is now pricing in lower chances for a rate hike in September, with odds falling below 32.5% - their lowest level since the last FOMC meeting.

This development could be positive news for crypto markets, as it gives them a relative edge against the S&P500 index, which has reached its highest ever valuation in history, surpassing even the infamous 2000 dot-com bubble peak.

BTC's Open Interest has crossed an 8-month peak and climbed to the level seen prior to the October crash, indicating a significant increase in leverage while price is barely moving. This could lead to a short squeeze if fresh liquidity starts flowing into crypto markets.