Bloomberg analysts: The likelihood of Bitcoin consolidating is greater than further declines

ChainCatcher news, Bloomberg crypto analyst Jamie Coutts stated on social media that since the unwinding of the yen arbitrage trades, Bitcoin has experienced significant price volatility. Coutts pointed out several key points:

1. He underestimated the impact of the rapid rise in open interest (OI) and perpetual contract funding rates earlier this year;
2. The neutral stance of the market before the unwinding of the yen arbitrage trades limited the extent of liquidations so far;
3. Although Bitcoin prices may decline further, the reduction in open interest and negative funding rates suggest a higher likelihood of Bitcoin consolidating;
4. Central bank intervention is expected soon, making Bitcoin appear attractive at current price levels.