Analysis: Bitcoin's drop below $67,000 indicates bearish sentiment prevails, and deleveraging in the derivatives market continues to intensify.

Bearish sentiment dominated the crypto market, with Bitcoin and Ethereum continuing their decline. In the past 24 hours, Bitcoin fell approximately 2.4% to around $66,900, while Ethereum fell approximately 2.7%, breaking below the $2,000 mark. On the macro front, a weakening dollar and declining US Treasury yields fueled market expectations of a Federal Reserve rate cut. Polymarket data showed the probability of a March rate cut rising from 7% at the beginning of the month to approximately 19%, while Kalshi market data indicated around 21%. In the derivatives market, BTC futures open interest fell to $15.6 billion, indicating a continued deleveraging trend. Funding rates turned negative further (Binance approximately -6%, Bybit approximately -0.5%), and the three-month basis narrowed to 1.6%, reflecting a rapid cooling of institutional risk appetite. (CoinDesk)