Recent BTC liquidation cooled short-term overheating, says analyst

According to CryptoSlate, Bitget Wallet research analyst Lacie Zhang stated that a recent $1.76 billion liquidation event served to clear out excessive long positions in the market. Zhang noted that a decrease in open interest (OI) has also significantly reduced speculative positions compared to the previous week. The analyst explained that the crypto market tends to price in macroeconomic shocks ahead of traditional financial markets due to its 24-hour trading structure, high leverage, and rapid response times. If spot Bitcoin ETF outflows persist, Zhang added, BTC could potentially retest the $55,000 to $57,000 range.