Continuation...

An analysis of Coinglass data reveals a significant 2.16% drop in open interest and a 25% decrease in open interest volume over the past day, indicating reduced trading activity and potentially lower speculative interest. This decline suggests traders are less willing to take positions in Bitcoin, anticipating further price drops.

Moreover, the MVRV ratio, which compares Bitcoin’s market value to its realized value, stands at 1.98 at the time of writing. This ratio helps determine whether Bitcoin is undervalued or overvalued relative to its historical price norms. An MVRV ratio below 2 typically indicates Bitcoin is undervalued, suggesting prices could rise if market sentiment shifts. However, given the current market conditions and economic uncertainty, this potential growth should be approached with caution.