$1.5 Billion Dogecoin Hit in Open Interest as Price Awaits Market Decision

Dog-themed cryptocurrency Dogecoin (DOGE) has recorded $1.52 billion in open interest in the last 24 hours, according to CoinGlass data. Open interest refers to the total number of active futures contracts that have not yet been settled.

Though $1.5 billion remains significant, this marks a 1.13% drop in the past day. Dogecoin’s price continues to trade in a range, mirroring the current indecision on the market.

This present uncertainty in the broader markets has contributed to increased volatility in the cryptocurrency markets. Liquidity across the digital asset ecosystem continues to tighten, as seen in declining capital inflows and stagnation in stablecoin growth.

At press time, Dogecoin was down 0.85% in the last 24 hours to $0.154 after the markets reversed in response to Fed Chair Jerome Powell's statements on Wednesday.

Dogecoin recovered slightly after a three-day decline at the start of the week but has failed to make any significant move in the last 24 hours. Dogecoin has instead fluctuated in a tight range between $0.15 and $0.1578 as traders await clarity on the markets.

Market decision awaited

This market is currently waiting and looking for direction as uncertainty persists on rate cuts, a bullish catalyst for risk assets such as cryptocurrencies. On Wednesday, Fed Chair Jerome Powell stated that the Fed could find itself in the sticky dilemma of trying to control inflation and support economic growth.

According to CNBC, Deutsche Bank analysts said in a note that the Fed chair's comments added to the perception that the Fed may not be in a hurry to respond to recent weaker survey results, downplaying the need for Fed market intervention.

The jobless claims data released Thursday fell short of the consensus prediction of economists polled by Dow Jones. In the coming days, investor sentiment will be closely watched to adjudge the recovery on the markets.