Bitcoin has gone through a major shake-up in the past two months, with over $10 billion in open interest wiped out. While some see this as a much-needed reset, others warn that more ups and downs may be ahead.
What Happened?
Back on January 17, 2025, Bitcoin’s open interest (the total value of active futures contracts) hit a record $33 billion. But by early March, it had fallen by over $10 billion—a sign that many traders were forced out of their positions.
This drop was caused by a mix of factors, including:
- Political uncertainty causing panic in financial markets
- A cooling-off period after months of Bitcoin growth
- Traders pulling out to avoid bigger losses
Between February 20 and March 4, Bitcoin’s 90-day futures open interest fell 14%, shifting the market’s momentum.
Is This a Good or Bad Sign?
Some analysts believe this is a healthy reset, removing excess speculation and making Bitcoin’s price more stable in the long run. Others worry that this could lead to even more volatility before things settle.
Key Levels to Watch
Crypto analyst Benjamin Cowen warns that Bitcoin’s bull run could be at risk if prices drop below $70,000. If Bitcoin falls into the low $60,000s, it could mean the end of this cycle—similar to what happened in 2017, when Bitcoin crashed after hitting an all-time high.
Right now, Bitcoin is hovering around $82,900. Some believe that as long as it stays above $70,000–$73,000, the market structure remains intact. But if it dips below those levels, a bigger correction could come.
Can Bitcoin Hit $100,000?
Despite the uncertainty, some experts remain optimistic. Josh Mandell, a well-known analyst, believes that if Bitcoin closes above $84,000 by the end of the month, it could be on track to hit $100,000.
What’s Next?
Bitcoin’s history is full of big swings. In 2021, Bitcoin saw a similar period of uncertainty before hitting new highs. The same thing happened in 2013 and 2017—massive corrections were followed by even bigger gains.
For now, investors are split—some see this as a chance to buy at a lower price, while others prefer to wait and see what happens next.
One thing is for sure: crypto never stays boring for long.
