Bitcoin experiencing sharp deleveraging with Binance open interest at $9.6B; analyst warns excessive leverage could trigger another liquidation cascade.
DeFi & Yields ·
Bitcoin has entered a sharp deleveraging phase, marking its most severe contraction since 2023, according to a CryptoQuant analyst. Binance's open interest in Bitcoin contracts recently dipped below its 180-day moving average before stabilizing at roughly $9.6 billion—still above the long-term mean of $8.3 billion—and now represents approximately 37% of the market's total open interest across all venues.
The recent cycle has produced one of the largest liquidation cascades in Bitcoin's history. The analyst notes that market participants have begun re-entering positions, providing support for the recovery, yet cautions that if traders continue loading leverage at elevated levels, the market faces material risk of another major unwinding event.
It remains unclear whether the deleveraging phase has fully concluded or if further positioning adjustments lie ahead. The extent to which current leverage levels might constrain upside moves and the timing of any potential fresh liquidation pressure are not yet determined.