BTC sees biggest deleveraging since 2023 as trader return supports rebound

Bitcoin has gone through its biggest deleveraging since 2023, according to a CryptoQuant analysis by contributor Darkfost. In a post on X, Darkfost said leverage fell quickly enough for Binance BTC open interest to drop below its 180-day moving average in a cycle in which futures trading had driven the market. Darkfost said the move reflected a broad wipeout of excessive long and short positions built up during the correction. Binance BTC open interest now stands at $9.6 billion, above its 180-day average of $8.3 billion, and accounts for about 37% of total BTC open interest, Darkfost said. That is higher than the level seen when BTC recovered to $82,000 in May, and traders hit by the correction have already returned to the market, helping support Bitcoin’s bullish rebound, according to the analysis. Darkfost added that another sharp deleveraging could emerge if leverage builds up too much again.