Crypto traders unwind long positions amid trade war uncertainty, analysts warn
The open interest in the key cryptocurrencies has dropped sharply, indicating that traders reduce positions in the middle of macroeconomic uncertainty.
Crypto traders reduce long positions as uncertainty is built, with an open interest in the long term which decreases sharply in the concerns of the trade war and the difficult position of the Fed. In A post of March 4 On X, the blockchain company based in Singapore Matrixport revealed that Bitcoin (BTC), Ethereum (Ethn), and Solana (GROUND) The term contracts have experienced a huge drop in open interest.
“In particular, Ethereum’s open interest has returned to levels lastly seen in the summer of 2024. Despite Trump’s recent tweet on a potential Bitcoin strategic reserve and the next Summit of White House cryptography on March 7, the market remains in risk mode, participants cutting the exhibition.”
Markus Thielen, independent analyst
The Blockchain Society notes that many traders seem to wait for lighter signals before entering the market, Fed policies remain a key concern.
The warning comes as American president Donald Trump said 25% of the prices on the goods of Mexico and Canada will take effect from March 4, increasing trade tensions and the financial rattling.
At the end of February, Matrixport analysts warned The price of this bitcoin could remain under pressure until April due to a stronger US dollar and the changing market dynamics. Bitcoin being increasingly linked to traditional finances, analysts now expect the slowdown in prices to last until April. After the correction, Bitcoin was able to try to bounce back to the previous summits, they add.
Matrixport also noted the growing role of Wall Street investors. While wealth and asset managers see Bitcoin as a long -term investment, hedge funds use arbitration strategies to take advantage of Bitcoin volatility. According to Matrixport, these hedge funds “have collectively $ 10 billion in the Bitcoin ETF, and with total entries reaching $ 39 billion, this suggests that at least 25% of Bitcoin ETF capital is linked to arbitration transactions.”
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