BTC Open Interest Drops to Pre-Election Levels
Bulls are currently struggling to keep BTC above the $80,000 threshold as a break below could result in an ever more dramatic drop for the top crypto asset – possibly eyeing the $65,000 level as its next stop.
The President’s decision to set up a Bitcoin Strategic Reserve and his commitment not to sell any of these assets were widely anticipated by the market. Hence, this latest downturn could be the result of a “sell the news” moment for Bitcoin (BTC).
Open interest in BTC futures contracts has now dropped to the lowest level since November 6, meaning that most of the momentum that built up after Donald Trump’s victory in the Presidential election may have fully faded.
The macroeconomic backdrop continues to be relatively unfavorable for risky assets like cryptocurrencies as the Federal Reserve has been reluctant to keep lowering interest rates until the full impact of Trump’s tariffs is visible.
Today, the President imposed higher tariffs on Canadian steel in retaliation for a decision taken by the state of Ontario to impose a 25% levy on electricity exports to the United States.
