Bitcoin Market Resets as $10 Billion in Open Interest Vanishes
The Bitcoin market has experienced a significant reset, with over $10 billion in open interest disappearing in just two months. Analysts now predict a potential price recovery.
according to CryptoQuant analyst Darkfost, Bitcoin’s open interest peaked at $33 billion on January 17, indicating high market leverage. Though, political uncertainty linked to former U.S. President Donald Trump’s actions triggered widespread liquidations. Darkfost’s analysis shows that between February 20 and March 4, nearly $10 billion in open interest vanished.
this decline pushed Bitcoin’s 90-day futures open interest change to -14%, frequently enough a sign of market resets before price recoveries. Analysts believe this reduction in excessive speculation could stabilize the market for future growth.
Economist Timothy Peterson remains optimistic about Bitcoin’s long-term prospects.He notes that april and October are typically when Bitcoin sees the biggest seasonal gains. Peterson predicts Bitcoin could hit new all-time highs before June, with a median target of $126,000.
However, not all analysts share this bullish view. Benjamin Cowen,founder of Into The Cryptoverse,warns that if Bitcoin drops below the 2024 highs (around $70,000),the bull cycle could be in jeopardy. Cowen suggests that holding above $70,000–$73,000 would maintain the market’s structure.
Bitcoin is currently trading at $82,900. If past trends hold, this reset could lead to another strong rally in the coming months.
