Bitcoin Futures Traders Hedge Ahead of FOMC, Coinbase Premium Signals Strong Spot Demand

Bitcoin futures markets witnessed a notable decline in open interest, shedding approximately $2 billion in value as traders de-risked portfolios in anticipation of the Federal Open Market Committee (FOMC) meeting. This cautious approach reflects broader market uncertainty surrounding potential shifts in monetary policy, which could influence risk assets, including cryptocurrencies. Despite the pullback in derivatives activity, on-chain metrics reveal resilient underlying demand in spot markets. The Coinbase Premium Index, a key indicator measuring the price difference between Coinbase Pro and Binance, has remained positive, suggesting sustained buying pressure from U.S.-based investors. This divergence between futures and spot behavior highlights a strategic positioning among traders aiming to defend Bitcoin’s critical support level near $115,000. Analysts interpret the premium as a sign of institutional and high-net-worth accumulation, underscoring confidence in Bitcoin’s medium-term valuation despite short-term macroeconomic headwinds. The market’s split sentiment—derivatives caution versus spot market strength—illustrates the complex dynamics currently at play as participants navigate policy-driven volatility while maintaining bullish longer-term outlooks.