US stocks were weak on Wednesday (5/28), with investors cautiously waiting for Nvidia's earnings report. Nvidia released better-than-expected earnings after market hours, with stock prices rising over 4%. Bitcoin continues to hover around 107K, not far from its historical high but still unable to break through. The lower Open Interest (OI) level indicates that despite spot price increases, derivatives traders have not returned with the same leverage and confidence levels as past peaks.
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ToggleUS Five-Year Treasury Auction Successful, Yield Drops from High Point
Yesterday, the US Treasury auctioned 70 billion dollars of five-year new bonds, with strong investor demand, which is the latest evidence of investor interest in short-term bonds.
After the US bond issuance, bond yields of various maturities dropped from intraday highs. Indirect bidders (including a category of investors including foreign central banks) purchased new five-year bonds, reaching a record 78%. The strong investor demand contrasts sharply with the recent weakness in global long-term bond auctions.
Bloomberg market live blog strategist Cameron Crise stated:
"In this auction, there was almost no indication of US Treasury buyer resistance."
Nvidia Earnings Exceed Expectations, Surging 4% After Hours
Nvidia CEO Jensen Huang released a robust sales forecast, alleviating investor concerns about China's economic slowdown, and stated that the AI computing market will continue to achieve "exponential growth".
The company expects revenue of approximately 45 billion dollars for the second fiscal quarter ending in July. New export restrictions will cause Nvidia to lose about 8 billion dollars in revenue in China during this period, but the forecast still meets analyst expectations. This drove the stock up about 4% in after-hours trading on Wednesday.
BTC Hovering Around 107K, Open Interest Not Reaching New High
Bitcoin continues to hover around 107K, not far from its historical high but still unable to break through. According to The Block's analysis, Open Interest (OI) paints a more nuanced picture. OI represents the estimated notional value of all outstanding futures positions, or the total dollar value of BTC deliverable through outstanding contracts.
BTC futures Open Interest on Binance is 12.5 billion dollars, nearly 10% lower than the historical high of 13.7 billion dollars in the second week of December 2024.
Cumulative BTC futures Open Interest on Bybit is currently 7.6 billion dollars, 15% lower than the historical high of 8.95 billion dollars in the second week of December 2024, and 10% lower than the 8.5 billion dollars on February 21.
The lower OI level indicates that despite spot price increases, derivatives traders have not returned with the same leverage and confidence levels as past peaks.
Risk Warning
Cryptocurrency investment carries high risk, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
