The current situation in the cryptocurrency market shows a reduction in long positions due to increased uncertainty related to trade conflicts and the U.S. Federal Reserve's policies.
Decline in Futures Interest
A report from Matrixport highlights a significant drop in open interest for Bitcoin, Ethereum, and Solana futures. Ethereum's open interest has returned to levels not seen since the summer of 2024, despite President Trump's comments on a potential Strategic Bitcoin Reserve and the upcoming White House Crypto Summit.
Macroeconomic Factors
Trump's recent announcement of a 25% tariff on goods from Mexico and Canada starting March 4 has intensified trade tensions and unsettled financial markets. Analysts suggest that macroeconomic factors are playing an increasingly important role in shaping crypto market trends.
Wall Street's Role
Matrixport highlights the growing role of Wall Street investors in the crypto market. While asset managers view Bitcoin as a long-term investment, hedge funds are actively leveraging its volatility. The company estimates that hedge funds hold $10 billion in Bitcoin ETFs, with total inflows reaching $39 billion.
Despite current uncertainties, analysts suggest that once the correction stabilizes, Bitcoin could attempt to revisit previous highs.
