Recent activity in Bitcoin futures has seen a notable reduction, with $1.25 billion in open interest dissipating over the last day. Experts suggest this is beneficial for the BTC derivatives sector.
Data from Coinglass reveals that open interest in Bitcoin futures has decreased to $80.8 billion from $85 billion as of Tuesday afternoon, following a consistent decline since last Thursday.
“This adjustment has lowered open interest and likely represents a healthy reset rather than an ominous sign at this point, as it eliminated excessive leverage and stabilized speculative positions while maintaining crucial support at $112K for BTC,” stated Jean-David Péquignot, Deribit’s chief commercial officer by Coinbase to Decrypt.
Bitfinex analysts concurred that there’s no immediate cause for concern. They advised investors via Decrypt to view current market conditions as “a temporary cooldown after periods of volatility leading to significant liquidations.”
Péquignot noted that whether this recent downturn serves effectively as a reset hinges on macroeconomic clarity and price stability. He cautioned that failing to uphold supports could shift sentiment negatively.
The broader economic outlook remains uncertain.
In remarks delivered today at the Greater Providence Chamber of Commerce in Rhode Island, Federal Reserve Chair Jerome Powell appeared less concerned about tariffs compared to earlier this year but offered limited insight into upcoming Federal Open Markets Committee meetings.
“The comprehensive economic impacts stemming from major shifts in trade, immigration, fiscal policies remain uncertain,” he remarked. “A plausible scenario is that tariff-related inflation effects will be short-lived—a one-time alteration in price levels.”
Powell acknowledged the challenging task facing the Federal Open Markets Committee: balancing reduced interest rates’ effects on inflation and employment markets.
“Our policy trajectory isn’t predetermined,” he asserted. “We will continue assessing appropriate stances based on incoming data alongside evolving forecasts and risk balances.”
Investors are eagerly anticipating Friday morning’s consumer spending report from the Bureau of Labor Statistics Analysts predict August data will show consumer prices increased by 2.7% up from July’s figure of 2.6%, according to surveys conducted by Dow Jones Newswires The Wall Street Journal
Bitcoin recently traded around $111904 reflecting approximately .% lower value compared yesterday Crypto aggregator CoinGecko reports BTC declined over past week
“Funding rates remain within normal range liquidations normalize indicating risk flush Bitfinex analysts commented We observe structural change unless massive spot selling exchange withdrawals occur”
Péquignot emphasized cautious approach amid lower trading volumes Positive PCE print news could potentially trigger Bitcoin recovery
“Dovish signals might propel BTC towards $120000 hawkish tones may test $,,” he added With October bullish seasonality nearing retreat offers potential V-shaped recovery However vigilance essential avoid further volatility traps”