Bitcoin CME Futures Drop 5.6% Amid Trade Deal Uncertainty
CME's bitcoin futures indicate bearish sentiment following President Trump's announcement of no trade deal with China. Key points include:
- The April futures contract opened at $79,590, a 5.6% decrease from Friday's close of $84,250.
- Prices quickly fell to $76,800 amid significant drops in Dow and Chinese stocks.
- JPMorgan, S&P Global, and Goldman Sachs raised the likelihood of a U.S. recession this year.
- Trump stated solving the trade deficit with China is crucial before making any deals.
- Open interest in CME futures has dropped from a peak of 281.57K BTC in December to 140.5K BTC, the lowest since August 2024.
- In contrast, global futures open interest, excluding CME, rose from 400K BTC to 520K BTC over four weeks.
- An increase in open interest during price declines suggests traders are taking short positions.