Darkfost
The BTC market is undergoing deleveraging.
On January 17th, Bitcoin's open interest reached an all-time high of over $33B, indicating that leverage in the market had never been this high. Following the recent panic triggered by political instability linked to Trump’s decisions, we witnessed a massive liquidation of leveraged positions on Bitcoin. Over $10B in open interest has been wiped out in just two months, with around $10B erased between February 20th and March 4th alone. This can be considered as a natural market reset, an essential phase for sustaining a bullish continuation. This chart highlights such reset phases by identifying moments when the 90-day open interest change turns negative. Currently, the 90-day change in Bitcoin futures open interest has dropped sharply and now sitting at -14%. Looking at historical trends, each past past deleveraging like this has provided good opportunities for the short to medium term.