According to a recent report from CryptoQuant contributor DarkFost, Bitcoin's substantial $12 billion open interest wipeout may serve as a catalyst for the asset to regain its upward momentum. This market reset is seen as a necessary phase for sustaining a bullish trend. Historical trends indicate that such deleveraging events have often provided favorable opportunities in the short to medium term. As of now, Bitcoin's open interest stands at approximately $49.02 billion, following a drop from $61.42 billion on February 20. The recent volatility in Bitcoin's price, which fell below critical levels amid political uncertainties tied to US President Donald Trump's decisions on tariffs and interest rates, resulted in a significant liquidation of leveraged positions. Currently priced at $83,400, Bitcoin has seen a 14.58% decline over the past month. Analysts anticipate further volatility leading up to the March 19 Federal Open Market Committee meeting, where any unexpected changes could impact Bitcoin and other risk assets.

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