Bitcoin Suffers Largest Deleveraging Since 2023 Amid Volatile Market Conditions
A major deleveraging event has occurred in the Bitcoin market, with the largest since 2023 taking place in September 2026. According to CryptoQuant's Darkfost, this event was caused by a cycle dominated by futures volumes, leading to extensive liquidations of both short and long positions.
The deleveraging phase saw Binance's Open Interest drop below its 180-day average, with the figure falling from $9.6 billion to just under $8.3 billion. While this was seen as a necessary correction by Darkfost, it also raised concerns about the risk of another deleveraging event.
Despite the volatility, Bitcoin's price has shown signs of recovery, breaking out of its range between $60,000 and $66,000 in late August. Multiple analysts predict that BTC could soar to $100,000 by the end of 2026, although at least one more correction is expected before this occurs.
Darkfost emphasized the importance of caution, noting that the recent resurgence in Open Interest increases the risk of another deleveraging event.