CryptoQuant: Market deleveraging is approaching a critical point, analysts see it as a buy signal

According to ChainCatcher, market sources report that analyst GugaOnChain stated that the open interest (OI) in the cryptocurrency market has dropped by 11.32%, approaching the critical threshold of 12%, which is seen as a strong buy signal.

This deleveraging indicates that the market is clearing excessive speculative leverage, and historically, such events have been considered a necessary process for a healthy market "reset." Bitcoin has previously experienced OI declines ranging from 8% to 19%, with the total open interest dropping by more than 10 billions USD in extreme cases. Although current market sentiment may still be in a state of "extreme fear," major financial institutions such as JPMorgan believe that after large-scale leverage clearing, Bitcoin has "significant upside potential." Analysts believe that the current market is building a more stable foundation, creating favorable opportunities for long-term investors.