Bitcoin Open Interest Nosedives: A Warning or a Golden Opportunity?

Bitcoin Open Interest Nosedives! Why Experts Say This Could Be Bullish?

A cryptocurrency analyst believes that Bitcoin’s almost $12 billion open interest shakeout earlier this month could be the impetus for the market to resume its upward trajectory.

This can be considered as a natural market reset, an essential phase for sustaining a bullish continuation. Looking at historical trends, each past deleveraging like this has provided good opportunities for the short to medium term,

CryptoQuant contributor DarkFost

According to CoinGlass data, Bitcoin‘s open interest (OI), which measures the entire amount of unresolved derivative contracts, including options and futures, was $61.42 billion on February 20. By March 4, however, it had fallen 19% to $49.71 billion.

Mass Liquidations Shake Bitcoin as Trump’s Policies Rattle Investors

It occurred during periods of erratic price fluctuations brought on by uncertainties about the future of US interest rates and the tariffs imposed by US President Donald Trump.

Following the recent panic triggered by political instability linked to Trump’s decisions, we witnessed a massive liquidation of leveraged positions on Bitcoin,

DarkFost

The price of Bitcoin dropped throughout the two-week period below two significant price levels, approaching the levels observed in the days following Trump‘s election victory in November. On February 25, the price of Bitcoin fell back below $90,000. Two days later, on February 27, it fell below $80,000 for the first time since November. The current price, as reported by CoinMarketCap, is $82,869.

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