Bitcoin Sees Sharpest Deleveraging Since 2023 as Traders Re-Enter Market

Bitcoin has just experienced its most intense deleveraging phase since 2023, according to on-chain analyst Darkfost.

This correction was a necessary process of flushing out accumulated leverage in a cycle dominated by futures trading volume.

Binance's Bitcoin open interest fell sharply below its 180-day moving average, underscoring the speed and severity of the deleveraging.

While open interest has not been fully eliminated, it currently stands at about $9.6 billion on Binance, still above the 180-day average of $8.3 billion.

Traders are showing signs of re-entering the market, helping to trigger a strong rebound in Bitcoin.