PiCK

[Analysis] "Ethereum open interest plunges...risk-off sentiment strengthens"

Source

Uk Jin

Summary

CryptoQuant's Darkfost said Ethereum open interest fell from 7.79 million to 5.80 million, indicating position reductions and deleveraging.
He analyzed that as U.S.-Iran tensions rise and macroeconomic uncertainty increases, traders are turning to risk-off behavior and safer investments.
He noted that core PPI rose 0.8%, with inflationary pressure and the likelihood of delayed Fed rate cuts combining to significantly impact the crypto market.

Forecast Trend Report by Period

An analysis has found that open interest in Ethereum (ETH) is plunging, as traders appear to be moving into risk-off mode amid escalating tensions between the United States and Iran.

On the 1st (Korea time), CryptoQuant contributor Darkfost said in a report that "total exchange open interest for Ethereum, measured in ETH, fell from 7.79 million to 5.80 million," adding that "this indicates position reductions and broad-based deleveraging."

He added that "the decline in notional open interest, reflecting price moves, was even larger," noting that "a similar pattern is being observed across multiple exchanges, including Binance, Bybit and Gate.io."

The contributor explained that as macroeconomic uncertainty has increased recently, traders have shifted toward safer investments. He said, "In Friday's Producer Price Index (PPI) release, the core PPI rose 0.8%, confirming that inflationary pressures remain persistent," adding that "this is interpreted as a signal that it will be difficult for the Fed to move quickly to cut rates." He also assessed that "geopolitical risk has been added as tensions between the United States and Iran intensified over the weekend," concluding that "the crypto market is being significantly affected in this environment."

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