Crypto Futures Open Interest Plummets Amid Market Uncertainty
Traders are cutting back on their crypto positions due to growing economic worries. A significant drop in futures open interest for major cryptocurrencies like Bitcoin, Ethereum, and Solana reflects this trend. Matrixport, a Singapore-based blockchain firm, highlighted this decline in a recent X post.
Matrixport noted that Ethereum’s open interest has fallen to levels not seen since last summer. Despite positive news like Trump’s tweet on a potential Strategic Bitcoin Reserve and an upcoming White House Crypto Summit, the market remains cautious.Traders are waiting for clearer signals before re-entering.
Markus Thielen, an independent analyst, points out that the Federal Reserve’s policies are a major concern. the U.S. President’s declaration of tariffs on goods from Mexico and Canada has also increased trade tensions, affecting financial markets.
Matrixport analysts predict that Bitcoin’s price may stay under pressure until April due to a stronger U.S. dollar. However, they believe a rebound to previous highs is possible after the correction.
Wall Street investors are playing a growing role in the crypto market. While wealth managers see Bitcoin as a long-term investment, hedge funds are using arbitrage strategies to profit from its volatility. Matrixport estimates that at least 25% of Bitcoin ETF capital is tied to these trades.
