🔥 $BTC leverage reduction, could it create a sustainable recovery?
According to data from CryptoQuant, open interest (OI) on the BTC derivatives market has dropped by more than 30% from its peak in October last year.
This reduction in leverage is seen as a positive signal, helping to eliminate excessive risk positions, which have historically been the trigger for sudden price crashes.
ℹ️ Historically, major OI declines have often marked key bottoms, laying a solid foundation for a healthier bull cycle. Instead of relying on artificial leverage, BTC's recent nearly 10% gain from the start of the year indicates buying pressure is shifting toward the spot market.
Nevertheless, many institutions remain cautious, arguing that the current derivatives structure is merely a short-term reaction and does not yet fully confirm a prolonged bull run.
