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Analyst: The futures market has shown "signs of deleveraging" over the past three months; the reset of market dynamics may indicate that a short-term bottom has formed.
Svmuu News: Cryptocurrency data platform CryptoQuant reports that over the past three months, open interest in the Bitcoin derivatives market has continued to decline, and market leverage levels have gradually decreased, creating conditions for the overall market structure to shift toward a bullish trend.Since last October, open interest (OI) in Bitcoin derivatives has fallen by 31%, which is considered a “deleveraging signal” that helps eliminate accumulated excess leverage in the market.The platform cited the view of crypto analyst “Darkfost,” who stated: “Historical data shows that such deleveraging phases often mark the formation of significant market bottoms, effectively resetting the market landscape and building a more solid foundation for a potential bull market recovery.” The analyst believes this pattern may be repeating itself, but added that if Bitcoin continues to decline and fully enters a bear market, “open interest may contract further, signaling a deeper deleveraging adjustment and the continuation of the correction.”
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