Editor's PiCK
[Analysis] "Futures Open Interest Plummets...Market in 'Risk-Off' Mode"
Summary
- Cryptocurrency futures open interest is plummeting, which indicates traders are liquidating long positions in response to price declines, according to the report.
- Matrixport revealed that Ethereum open interest has decreased to last year's levels and the market is maintaining a risk-off mode.
- Many traders are reportedly postponing re-entry into long positions amid macroeconomic uncertainty.
It has been revealed that cryptocurrency open interest (OI) is rapidly decreasing due to macroeconomic uncertainty.
Cryptocurrency analytics firm Matrixport announced on the 4th via X, "Currently, futures open interest is decreasing rapidly," adding that "this means some traders are liquidating their long positions along with price declines." Matrixport added, "Especially Ethereum (ETH) open interest has returned to levels seen last summer."
Matrixport emphasized that the market is maintaining a 'Risk-Off mode.' Matrixport stated, "Despite U.S. President Donald Trump recently mentioning the possibility of stockpiling Bitcoin (BTC) and a White House cryptocurrency summit scheduled for the 7th of this month, the market still maintains a risk-off mode." They continued, "These movements are occurring amid uncertainties such as trade wars and the Federal Reserve's (Fed) continued hawkish stance," and analyzed that "many traders appear to be postponing re-entry into long positions until macroeconomic uncertainties are resolved."
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
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