Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    BitcoinCore website hosts letter from one side of OP_RETURN debate

    July 1, 2025

    European fintech Spiko integrates Chainlink’s CCIP for $380m money market funds

    July 1, 2025

    FreeWallet accused of ‘robbery’ via hidden fees and KYC delays

    July 1, 2025
    Facebook X (Twitter) Instagram
    Tuesday, July 1
    • About
    • Contact us
    • Privacy Policy
    Facebook X (Twitter) LinkedIn YouTube
    Blockchain Echo
    Banner
    • Lithosphere News Releases
    • Bitcoin
    • Crypto
    • Ethereum
    • Litecoin
    • Altcoins
    • Blockchain
    Blockchain Echo
    Home » Crypto traders unwind long positions amid trade war uncertainty, analysts warn
    Crypto

    Crypto traders unwind long positions amid trade war uncertainty, analysts warn

    John SmithBy John SmithMarch 4, 2025No Comments2 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email



    Futures open interest in key cryptocurrencies has fallen sharply, indicating traders are reducing positions amid macroeconomic uncertainty.

    Crypto traders are scaling back long positions as uncertainty builds, with futures open interest dropping sharply amid trade war worries and the Fed’s tough stance. In a March 4 post on X, Singapore-based blockchain firm Matrixport revealed that Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) futures have seen a huge drop in open interest.

    “Notably, Ethereum’s open interest has dropped back to levels last seen in the summer of 2024. Despite Trump’s recent tweet about a potential Strategic Bitcoin Reserve and the upcoming White House Crypto Summit on March 7, the market remains in risk-off mode, with participants cutting exposure.”

    Markus Thielen, independent analyst

    The blockchain firm notes that many traders seem to be waiting for clearer signals before re-entering the market, with the Fed’s policies remain a key concern.

    The warning comes as U.S. President Donald Trump said 25% tariffs on goods from Mexico and Canada will take effect from March 4, ramping up trade tensions and rattling financial markets.

    In late February, Matrixport’s analysts warned that Bitcoin’s price could stay under pressure until April due to a stronger U.S. dollar and shifting market dynamics. With Bitcoin becoming more tied to traditional finance, the analysts now expect the price downturn to last until April. After the correction, Bitcoin could try to bounce back to previous highs, they add.

    Matrixport also noted the growing role of Wall Street investors. While wealth and asset managers see Bitcoin as a long-term investment, hedge funds are using arbitrage strategies to profit from Bitcoin’s volatility. Per Matrixport, these hedge funds “collectively hold $10 billion in Bitcoin ETFs, and with total inflows reaching $39 billion, this suggests that at least 25% of Bitcoin ETF capital is tied to arbitrage trades.”



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleNearly 20% of Bybit’s $1.46b stolen funds ‘gone dark,’ CEO says
    Next Article Bitcoin Pepe emerges as a possible go to altcoin as crypto market bleeds
    John Smith

    Related Posts

    European fintech Spiko integrates Chainlink’s CCIP for $380m money market funds

    July 1, 2025

    Not all Bitcoin holding firms will avoid death spiral

    July 1, 2025

    Senate passes Trump’s massive budget bill, with no mentions of crypto or Bitcoin

    July 1, 2025
    Leave A Reply Cancel Reply

    Top Posts

    🐍 Lunar New Year Scratch & Win Campaign Is Live with a Grand Prize of 8,888,888 VERSE (~$1800) | by Bitcoin.com | Jan, 2025

    January 24, 2025

    Trade VERSE/USDT on KuCoin to Earn your Share of $8400 in Rewards! | by Bitcoin.com | Jan, 2025

    January 24, 2025

    Boost Your Crypto: Up to 30% Cash Back! | by Bitcoin.com | Jan, 2025

    January 24, 2025
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews

    Subscribe to Updates

    Get the latest tech news from FooBar about tech, design and biz.

    About Us

    Stay updated on the world of cryptocurrency
    Your one-stop source for daily crypto news and insights
    Blockchainecho.info: Your trusted daily crypto companion

    Most Popular

    🐍 Lunar New Year Scratch & Win Campaign Is Live with a Grand Prize of 8,888,888 VERSE (~$1800) | by Bitcoin.com | Jan, 2025

    January 24, 2025

    Trade VERSE/USDT on KuCoin to Earn your Share of $8400 in Rewards! | by Bitcoin.com | Jan, 2025

    January 24, 2025

    Boost Your Crypto: Up to 30% Cash Back! | by Bitcoin.com | Jan, 2025

    January 24, 2025
    Copyright © 2025
    • Home
    • Buy Now

    Type above and press Enter to search. Press Esc to cancel.