Analyst: Bitcoin Sees Sharpest Deleveraging Since 2023

On September 7, Cryptoquant analyst Darkfost noted that Bitcoin has experienced its sharpest deleveraging since 2023. Open interest (OI) on Binance dropped significantly, falling below the 180-day average. The market completed this adjustment through forced liquidations or heavy position unwinding, with the cycle also recording the largest liquidation event in Bitcoin's history. Despite this, Binance's open interest remains high at $9.6 billion, above the 180-day average of $8.3 billion, accounting for roughly 37% of total Bitcoin open interest. This level exceeds that seen during the May rally, which had previously pushed Bitcoin's price back to $82,000. Traders have since re-entered the market, driving a rebound in Bitcoin. However, caution is warranted as excessive leverage could trigger another sharp deleveraging event.