Analysis: Bitcoin has experienced its most severe deleveraging since 2023, yet a new round of liquidation risks remains.

BlockBeats News, September 7 — CryptoQuant analyst Darkfost stated that Bitcoin has recently experienced its most intense round of deleveraging since 2023. In a market environment previously dominated by futures trading volume, Binance's Open Interest has notably declined, briefly falling below its 180-day moving average, reflecting the intensity and speed of this deleveraging process.

Darkfost believes this process is necessary for Bitcoin. As the market pulls back, it forces previously oversized long and short positions to be closed or liquidated. During this cycle, Bitcoin has also experienced one of the largest liquidation events in its history.

However, despite the significant deleveraging, Binance's current Open Interest still stands at approximately $9.6 billion, higher than the 180-day average of around $8.3 billion, accounting for roughly 37% of Bitcoin's total network Open Interest. This level is even higher than during the market rebound in May, when BTC briefly recovered to $82,000.

Darkfost noted that although this adjustment has had a clear impact on traders, leveraged capital appears to have quickly returned to the market and has become one of the key drivers behind the recent BTC rebound. However, current market leverage levels remain relatively high, and should leverage become excessively accumulated again in the future, it could still trigger another round of sharp deleveraging.