CME’s Bitcoin futures, which are often seen as a measure of institutional activity, opened lower on Monday, reflecting a bearish outlook triggered by President Trump’s announcement that a trade agreement with China is off the table. The futures started at $79,590, marking a decline of 5.6% from the previous close of $84,250, and quickly fell to $76,800, according to CoinDesk data.
What to Know:
- CME’s Bitcoin futures noted a downturn following Trump’s announcement dismissing the prospect of a trade agreement with China.
- Open interest in these futures has been noticeably reduced, hinting at a potential retreat from digital assets.
On Air Force One, Trump remarked that he wished to remedy the trade deficit with China, stating, “Unless we solve that problem, I won’t make a deal.” He believes that world leaders are eager to negotiate and emphasized the necessity of imposing tariffs to remedy the situation, indicating that financial turmoil is a necessary step forward. “I don’t want anything to drop, but sometimes you need to take medicine to make something right,” Trump stated.
Additionally, open interest for CME futures peaked in December but has since fallen significantly, indicating money may be exiting the digital asset market.
As a contrast, global futures and perpetual futures’ open interest, outside of CME, has risen from approximately 400K BTC to 520K BTC in the last month, suggesting traders may be increasingly positioning themselves for downward price movements.
