First Mover Americas: Altcoin Crash May Be on the Cards

Bitcoin (BTC) reversed Monday’s decline to three-month lows under $25,000 during Asian trading hours, jumping back to around $26,000 as open interest on Binance, Bybit, OKX and Deribit fell to $4.8 billion from $5.05 billion. The decline in open interest suggests short traders were abandoning their bearish bets in what’s known as a short squeeze. The price recovery may remain capped due to a lack of immediate bullish catalysts. The bitcoin spot ETF optimism has faded, with observers shifting focus to the impending liquidation of FTX’s altcoin holdings.