Bitcoin futures positions have declined to their lowest level in two months, suggesting that the potential for further drawdowns in Bitcoin's price may be limited. The total Open Interest (OI) for Bitcoin futures has decreased by 11% since its peak of 668,100 BTC on December 20th, currently standing at 595,700 BTC. Despite the price decline, the 1-month BTC futures premium remains elevated at 15%, the highest since December 20th, indicating that some market participants retain a degree of optimism. The decline in futures positions suggests that traders are unwinding their bullish bets as Bitcoin's price continues to consolidate. This could put further downward pressure on the price in the short term. However, the elevated futures premium suggests that some traders still believe that Bitcoin's price has more room to grow. Only time will tell whether the decline in futures positions will lead to a further sell-off in Bitcoin's price. However, the current market conditions suggest that the potential for a significant drawdown is limited.

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