Bitcoin Experiences Largest Deleveraging Since 2023

Bitcoin has undergone the most severe deleveraging since 2023, with Binance's Bitcoin open interest (OI) significantly declining, falling below the 180-day average. The market adjusted through forced liquidations or margin calls on over-leveraged positions, resulting in the largest liquidation event in Bitcoin's history during this cycle. Nevertheless, Binance's open interest remains high at $9.6 billion, exceeding the 180-day average of $8.3 billion, accounting for approximately 37% of Bitcoin's total open interest. This level is higher than during the rebound period in May, which had pushed Bitcoin's price back up to $82,000. Currently, traders have re-entered the market, driving a Bitcoin rebound, but caution is warranted as excessive leverage could trigger another severe deleveraging.

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