Crypto Market Braces for Uncertainty: Ethereum Open Interest Plummets Amidst Trade Tensions and Fed Hawkishness

The crypto market has entered a risk-off mode as traders await clear macroeconomic signals, according to a daily analysis report released by Matrixport. The report highlights a significant drop in futures open interest as prices decline, indicating that some traders are unwinding their long positions amidst uncertainty surrounding escalating trade tensions and the Federal Reserve's continued hawkish stance.

Notably, Ethereum's open interest has fallen to its lowest level since the summer of 2024. Despite recent mentions of a possible creation of a Strategic Bitcoin Reserve by Trump and the upcoming White House Crypto Summit on March 7th, the market remains cautious, with investors cutting their risk exposure. Many traders seem to be waiting for clearer macroeconomic signals before re-establishing long positions.

In other news, the US stock market and cryptocurrency market have both experienced significant losses, with the US stock market losing $1.5 trillion and the cryptocurrency market losing $300 billion. Trump held a lavish press conference to address these market fluctuations.

Meanwhile, Arthur Hayes, the former CEO of BitMEX, has stated that Bitcoin could drop to $70,000, but he still believes that the bull market cycle is ongoing. This sentiment comes as the crypto market awaits clearer macroeconomic signals to guide its direction.