According to a cryptocurrency analyst, Bitcoin’s recent open interest drop of nearly $12 billion could be the catalyst that the asset needs to gain its upward momentum.
“This can be considered as a natural market reset, an essential phase for sustaining a bullish continuation,” CryptoQuant contributor DarkFost said In a report on the 17th of March, we look at all aspects of markets.
“Looking at historical trends, each past deleveraging like this has provided good opportunities for the short to medium term,” The analyst stated.
CoinGlass data shows On February 20, Bitcoin (BTC) open interest (OI) — a metric tracking the total number of unsettled Bitcoin derivative contracts such as options and futures — stood at $61.42 billion before dropping 19% to $49.71 billion by March 4.
Bitcoin’s Open Interest was $49.02B at the publication date. Source: CoinGlass
The price fluctuations were due to the uncertainty surrounding US President Donald Trump’s tariffs, and future interest rates in the US.
“Following the recent panic triggered by political instability linked to Trump’s decisions, we witnessed a massive liquidation of leveraged positions on Bitcoin,” DarkFost is a brand new company.
Bitcoins’ price dropped below two critical price levels over the past two weeks, and is now closer to levels that were seen after Trump won the election in November.
Bitcoin prices fell below $90,000. Two days later on Feb. 27 Bitcoin dropped below $80,000 for the first time It’s now trading at $83,400. The price has increased to $83,400. according CoinMarketCap Data
Bitcoin has fallen by 14.58% in the last 30 days. Source: CoinMarketCap
Ryan Lee is the Bitget Chief Analyst recently told Cointelegraph Bitcoin is currently hovering at around $80,000, and its OI price could be more volatile if there are any surprises in the Federal Open Market Committee’s meeting on the 19th of March.
“The market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin and other risk assets,” He added.
Related: Bitcoin experiencing ‘shakeout,’ not end of 4-year cycle: Analysts
The CME Group’s FedWatch estimates that markets currently price in a 98% chance of the Fed keeping interest rates stable. tool.
Bitcoin OI, at the time this publication was published, was sitting at 49,02 Billion USD, an approximately 6,5% increase in the previous five days.
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Source: cointelegraph.com
