Bitcoin Futures Cooling Suggests Possible Market Reset Ahead of Potential Rally

Key Points

1. The cooling of the Bitcoin futures market is driven by reduced leverage, leading to lower volatility and a more stable environment.

2. Reduced open interest and normalized funding rates indicate a shift towards organic demand and long-term holding.

3. Historical patterns show that mid-cycle consolidation phases, like the current one, often precede new all-time highs in Bitcoin prices.

4. Macroeconomic factors such as institutional inflows from Bitcoin Spot ETFs and the upcoming halving event could influence Bitcoin's next rally.

5. Investors are advised to focus on steady accumulation and risk management during this cooling phase to prepare for potential future growth.