Analysis Firm Matrixport Warns Bitcoin Investors: "The Rally in BTC and Altcoins Isn't Over, But Beware the Short Term!"

With only a week left until the highly anticipated FED interest rate decision, cryptocurrency company Matrixport has published its new analysis.

At this point, Matrixport stated that cryptocurrency investors should be careful in the short term.

Analysts pointed out that open interest and funding rates, especially in Bitcoin futures, are increasing together, and that the two increasing together could cause volatility in the short term.

Analysts noted that Bitcoin open interest has increased by $6 billion in the last two weeks, while the annual funding rate has risen to 19 percent.

Analysts said this was a sign that investors were aggressively taking long positions, and that this increase occurred alongside a sharp increase in retail crypto transaction volumes in South Korea, jumping from $1 billion to $6 billion.

At this point, analysts stated that the significant increase in open position value, especially in Bitcoin futures, could create exaggerated optimism in the market and that there is a high probability that many opened long positions will be liquidated as a result.

Although Matrixport expects volatility in the short term, it was stated that August is traditionally a quieter month in financial markets and that liquidity and volatility may decrease in August.

Despite the near-term risks, Matrixport said it maintains its bullish outlook for the remainder of 2025 and expects the overall upward trend to continue with a number of key catalysts on the horizon, including the US FOMC meeting scheduled for next week.

“Major catalysts are lining up for the post-summer period, and the overall crypto rally is not over yet, and the broader crypto uptrend is still intact.”

*This is not investment advice.