Bitcoin News: Futures Market Sees Major Drop in Open Interest Following Bitcoin Price Correction

The cryptocurrency market experienced significant volatility recently, with Bitcoin`s price dropping sharply and triggering major liquidations in the futures market. Here`s a closer look at what happened and its implications for the market.

Futures Market Sheds $2.24B in OI After Bitcoin Drop

On Feb. 25, Bitcoin’s price plummeted to $88,500, triggering $1.48 billion in liquidations across the futures market. This significant correction was partly sparked by macro uncertainty following Trump’s proposed tariffs. While the initial reaction to the tariffs sent Bitcoin to $91,000, altcoins saw an even steeper decline. The futures market felt the brunt of this volatility, with open interest (OI) dropping from $57.95 billion to $55.71 billion across exchanges. OI, which represents the total number of outstanding futures contracts, is a key indicator of market leverage and activity.

Bitcoin Slips Below $90K, Triggering $1B in Crypto Liquidations

Bitcoin`s sharp decline to $86,099 wiped out $1.06 billion across the crypto market, with long positions suffering $873 million in losses. Data from Coinglass showed that 230,000 traders were liquidated in the past 24 hours. Open interest dropped 5%, indicating widespread deleveraging. Exchange inflows climbed 14.2%, potentially signaling more panic selling. Funding rates shifted negative, reflecting a change in investors` attitude. Strong withdrawals from U.S. spot Bitcoin (BTC) ETFs accompanied the massive sell-off, totaling $1.1 billion in outflows over five days. Crypto-related stocks were also affected, with Coinbase (COIN) falling 6.4%, Robinhood (HOOD) falling 8%, and Bitcoin miners experiencing declines.

Montana House of Representatives Rejects $50 Million Bitcoin Reserve Plan

Montana’s legislature rejected House Bill 429 in a 41-59 vote. The bill aimed to allocate up to $50 million in public funds for digital assets, with Bitcoin as the top cryptocurrency. Critics cited risks from crypto market volatility, while supporters believed it could outperform traditional bonds.

Michael Saylor Calls Bitcoin “On Sale” as BTC Faces 6% Losses

Michael Saylor, Chairman of Strategy at MicroStrategy, suggests the current market conditions present a buying opportunity for Bitcoin. BTC has seen a decline of nearly 6% over the past 24 hours, dipping below the $91,000 mark. This price drop comes amidst broader market concerns, including worries about the global economy, government layoffs, trade tensions, and the AI sector. Fears of a trade war between the US, Canada, and Mexico are also contributing to market uncertainty.

Ark Invest Makes Major Portfolio Adjustments

Ark Invest has demonstrated strategic agility by making several significant portfolio adjustments. The firm acquired nearly half a million shares of Tempus AI Inc., betting on growth in data, services, and genomics revenue. Capitalizing on legal developments, Ark invested in Coinbase Global Inc., purchasing over 41,000 shares amid a resurgence in cryptocurrency confidence. Notably, Ark sold almost 100,000 shares of the ARK 21Shares Bitcoin ETF, indicating caution amidst cryptomarket volatility. Diversification was evident with divestments from DraftKings and Roku and new investments in the pharmaceutical space, including Recursion Pharmaceuticals and Absci Corp. Ark’s strategies underscore a fearless embrace of innovation, keen market insight, and a calculated approach to risk and opportunity.