Bitcoin Futures: A Healthy Shrinkage or a Warning?

Bitcoin futures have experienced a noticeable decline in recent days. With a withdrawal of contracts worth $1.25 billion just on the last day, the open interest decreased from $85 billion to $80.8 billion. According to the crypto analysis company Coinglass, this reduction could represent a healthy market correction. Jean-David Péquignot from Deribit at Coinbase considers this development an opportunity for market stabilization, as it has eliminated excessive leverage while the critical support level at $112,000 for BTC has been maintained. Bitfinex exchange analysts also see no reason for concern. They interpret the current market situation as a temporary cooling following peaks of volatility that led to large liquidations. Nevertheless, the macroeconomic outlook remains unclear. The chairman of the US Federal Reserve, Jerome Powell, emphasized in a speech that the economic impacts of trade, immigration, fiscal, and regulatory policies are not yet fully foreseeable. He remains calm regarding tariffs but highlighted the adaptability of the monetary policy course. Meanwhile, the financial world awaits data from the Bureau of Labor Statistics, which expects an increase in consumer prices by 2.7% for August. The Bitcoin price recently reached $111,904, reflecting a 0.7% decrease compared to the previous day. Bitfinex analysts note that funding rates remain within the normal range, and liquidations are normalizing, indicating a healthy market development. Péquignot advises caution due to low trading volumes. Positive reports from the PCE release could revive Bitcoin and potentially push it to $120,000, according to Péquignot, while worse news could result in a decline to $110,000.