The latest report from Matrixport, dated March 4th, highlights a **decline** in futures open interest that coincides with a drop in cryptocurrency prices. This trend is largely attributed to the current **uncertainty** stemming from rising trade tensions, combined with the Federal Reserve’s persistent **hawkish** monetary policy. Notably, the open interest for **Ethereum** has reached its lowest point since the summer of 2024, signaling a cautious market sentiment. While former President Trump has suggested the establishment of a **Strategic Bitcoin Reserve** and anticipation builds for the **White House Crypto Summit** on March 7th, traders remain in a **risk-off** posture. This aversion to risk reflects a broader tendency among investors to minimize exposure while awaiting more definitive macroeconomic indicators before committing to long positions again. Such market dynamics underscore the importance of strategic planning in the cryptocurrency trading landscape.
Source: https://en.coinotag.com/breakingnews/ethereum-sees-historic-drop-in-open-interest-amid-market-uncertainty-and-federal-reserve-hawkishness/