Bitcoin Unloads Leverage in Largest Deleveraging Phase Since 2023
Bitcoin has experienced its largest deleveraging phase since 2023. This significant reduction in positions backed by borrowed money is attributed to a cycle dominated by futures volumes, leading to liquidations of both short and long bets that became 'too heavy.'
The overall phase saw one of its starkest moments when Bitcoin open interest on Binance fell below its 180-day average.
However, despite the liquidations failing to fully eliminate leverage, recent data hints at a bullish rebound for Bitcoin. The cryptocurrency expert noted that this phase was 'necessary' for Bitcoin and that traders should remain cautious due to the elevated levels of open interest, which raises the risk of another deleveraging event.
Bitcoin's price performance in 2026 has been marked by multiple bullish turns, including a recent surge of over 25% that saw it break out of its summer range between $60,000 and $66,000. While some estimate that this upsurge may signify the end of the bear market and predict a price target of $100,000 before the end of the year, others caution that at least one more correction is expected before the next breakout.