{"id":125278,"date":"2025-03-18T04:17:34","date_gmt":"2025-03-18T04:17:34","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125278"},"modified":"2025-03-18T04:17:34","modified_gmt":"2025-03-18T04:17:34","slug":"bitcoins-recent-12b-open-interest-wipeout-was-essential-says-analyst","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125278","title":{"rendered":"Bitcoin\u2019s recent $12B open interest wipeout was essential, says analyst"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin\u2019s nearly $12 billion open interest shakeout earlier this month might be just the catalyst needed for the asset to regain its upward momentum, according to a crypto analyst.<br \/>\n\u201cThis can be considered as a natural market reset, an essential phase for sustaining a bullish continuation,\u201d CryptoQuant contributor DarkFost said in a March 17 markets report.<br \/>\n\u201cLooking at historical trends, each past deleveraging like this has provided good opportunities for the short to medium term,\u201d the analyst said.<br \/>\nCoinGlass data shows that on Feb. 20, Bitcoin&#8217;s (BTC) open interest (OI) \u2014 a metric tracking the total number of unsettled Bitcoin derivative contracts such as options and futures \u2014 stood at $61.42 billion before dropping 19% to $49.71 billion by March 4.\u00a0<br \/>\nBitcoin\u2019s open interest is sitting at $49.02 billion at the time of publication. Source: CoinGlassIt came amid volatile price swings due to uncertainty over US President Donald Trump\u2019s imposed tariffs and the future of US interest rates.<br \/>\n\u201cFollowing the recent panic triggered by political instability linked to Trump\u2019s decisions, we witnessed a massive liquidation of leveraged positions on Bitcoin,\u201d DarkFost said.<br \/>\nBitcoin\u2019s price fell below two crucial price levels during the two-week period, bringing it closer to the levels seen in the days after Trump\u2019s election win in November.<br \/>\nFeb. 25 saw Bitcoin\u2019s price retrace below $90,000, and just two days later, on Feb. 27, Bitcoin dropped below $80,000 for the first time since November. It\u2019s now trading at $83,400, according to CoinMarketCap data.<br \/>\nBitcoin is down 14.58% over the past 30 days. Source: CoinMarketCapBitget chief analyst Ryan Lee recently told Cointelegraph that with Bitcoin hovering in the low $80,000s, its price and OI could see more volatility if the March 19 Federal Open Market Committee meeting delivers any surprises.<br \/>\n\u201cThe market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin and other risk assets,\u201d he added.\u00a0<br \/>\nRelated: Bitcoin experiencing \u2018shakeout,\u2019 not end of 4-year cycle: Analysts<br \/>\nMarkets are currently pricing in a 99% chance that the Fed will keep interest rates steady, according to the latest estimates of the CME Group\u2019s FedWatch tool.<br \/>\nAt the time of publication, Bitcoin OI is sitting at $49.02 billion, representing an approximate 6.5% increase over the past five days.<br \/>\nMagazine: Crypto fans are obsessed with longevity and biohacking: Here\u2019s why<br \/>\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-open-interest-wipeout-essential-phase-bullish-uptrend?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin\u2019s nearly $12 billion open interest shakeout earlier this month might be just the catalyst needed for the asset to regain its upward momentum, according to a crypto&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125278"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125278"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125278\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125278"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}