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An outstanding cryptographic analyst said that Bitcoin went through a significant event in recent months, since the open interest of the currency collapsed at almost 20%, eliminating around $ 12 billion.
The elimination of open interest of BTC may seem detrimental to the currency, but the cryptocant analyst Darkfost believes that cleaning is essential for a “bullish continuation”, citing that it can provide opportunities for its investors in the short term term if the story is repeated.
The open interest shaking of almost $ 12 billion of Bitcoin earlier this month could only be the catalyst necessary for the asset to recover its ascending impulse, according to a cryptographic analyst.
A catalyst
Coinglass data shows that the open interest of the firstborn crypto fell by 19%, from $ 61.42 billion to $ 49.71 billion, citing that the shake of $ 12 billion could be something good for Bitcoin.
“After the recent panic caused by political instability linked to Trump’s decisions, we witnessed a massive liquidation of bitcoin positions,” Darkfost said.
Source: Coinglass
The analyst said that more than $ 10 billion have been deleted in open interest in just two months, with an estimated $ 10 billion between February 20 and March 4.
Darkfost said that the elimination of forests experienced by BTC earlier this month could serve as the catalyst that the currency needs to recover the impulse that will allow cryptography to move up.
“This can be considered as a natural market restart, an essential phase to maintain a bullish continuation,” explained the analyst.
Good opportunities
Darkfost suggested that the recent test that Bitcoin faces could be advantageous for cryptography in the coming months.
The analyst provided a table that shows the restart phases when determining the moments in which the 90 -day open interest becomes negative, and added that the current 90 -day change in the future of Bitcoin’s futures collapsed and is now found at -14%.
“When observing the historical trends, each disappointment of the past as it has provided good opportunities for the short and medium term,” added the analyst.
Federal Reserve influence
Some experts said that the Federal Reserve actions could have an impact on what will happen next to Bitcoin.
The current meeting of the Federal Open Market Committee could add more volatility to cryptography if there is something unexpected in monetary policy.
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Bitget chief analyst Ryan Lee explained that Bitcoin is already around the level of $ 80,000 and more volatility could be expected in the price of the currency and the open interest if the Federal Federal Market Committee meeting of March 19 offers some surprise.
“The market expects to a large extent that the Fed maintains stable rates, but any unexpected auxiliary signal could press Bitcoin and other risk assets,” Lee said.
At the time of publication, Bitcoin’s open interest was $ 49.02 billion, which is approximately a 6.5% increase in the last five days.
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