CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data
Feb 20, 2025
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Bitcoin Traders Deleverage Following Fed’s Steady Rate Outlook

2 min

Crypto traders are reducing leverage following the FOMC minutes indicating the Fed's intention to maintain steady rates until inflation improves. Yield on the 10-year Treasury decreased, and the dollar weakened. Key developments include:

  • The CoinDesk 20 Index rose by 1.4%, with bitcoin up 1.2% within 24 hours.
  • Czech National Bank Governor Ales Michl supports bitcoin as a reserve asset.
  • Donald Trump claims to have ended Biden’s restrictions on Bitcoin and crypto.
  • Bitcoin is experiencing declining demand and liquidity, leading to a potential pullback to $86,000 from its current price over $97,000.
  • Open interest in bitcoin futures has fallen below $60 billion, down from nearly $70 billion in January.
  • Aggregate open interest for Solana dropped from around $6 billion to approximately $4.3 billion.

Market players anticipate broader macroeconomic factors and geopolitical developments affecting market movements. Upcoming events include:

  • Feb. 21: TON becomes exclusive blockchain for Telegram's Mini App ecosystem.
  • Feb. 24: Ethereum's Pecta upgrade testing begins on Holesky testnet.
  • Feb. 27: Launch of Solana-based L2 Sonic SVM mainnet.

Market highlights show:

  • BTC marginally increased to $97,300.67.
  • ETH rose to $2,738.90.
  • Total open interest across centralized exchanges grew by 2.1% to $80.8 billion.
  • BTC volatility in derivatives reached a monthly low at 28.43%.

In the context of crypto equities, notable performers included MicroStrategy (MSTR) closing at $318.67 and Coinbase Global (COIN) at $258.67. Spot BTC ETFs reported a net outflow of $64.1 million.

The Pi Network’s native token PI debuted at $1.70, peaked at $2.00 before dropping 50%. The network claims 60 million users but fewer than 1 million active wallets, raising liquidity concerns.

Recent analyses reveal shifts towards safer investments amid a cooling market phase, with attention shifting to macroeconomic indicators and geopolitical tensions.