Bitcoin ($BTC) entered a significant deleveraging period, marking its largest drop since 2023, as reported by CryptoQuant’s Darkfost on September 7.
The cryptocurrency analyst indicated that the previous futures-focused market cycle led to a pronounced decrease in leveraged positions. The volatility throughout the year resulted in liquidations of both overly ambitious short and long positions.
Darkfost pointed out a critical moment during this period when the open interest on Binance for $BTC dropped below its 180-day average.
However, he noted that this wave of liquidations did not fully eradicate leverage, and by the time of his post, overall levels remained significantly high. For instance, after a brief decline, Binance’s open interest rose again to $9.6 billion, surpassing the 180-day average of $8.3 billion.
Despite the challenges faced by traders, the expert deemed this phase as ‘necessary’ for Bitcoin’s progression. Recent indicators suggest a possible bullish recovery for the leading cryptocurrency. Nevertheless, he advised caution, as increased open interest could signal the possibility of another deleveraging event.
🗞️ Bitcoin faced its most notable deleveraging since 2023
Following a phase dominated by futures trading, Bitcoin recently underwent its steepest deleveraging process since 2023.
This was reflected in a significant drop in Binance’s Open Interest, falling below its… pic.twitter.com/KtSU6C6nWS
— Darkfost (@Darkfost_Coc) September 7, 2026
Bitcoin’s Performance in 2026
When analyzing $BTC in 2026, it becomes evident why both long and short positions faced substantial liquidations.
Although the cryptocurrency is currently down 8.56% for the year, it has also seen numerous positive trends, notably around mid-January, April, early May, and late August.
The latest surge is particularly noteworthy. Bitcoin rapidly increased by over 25%, and although it has dipped from its recent highs above $80,000, currently resting at $79,931, it successfully broke free from a range it had been confined to throughout most of the summer, between approximately $60,000 and $66,000.
Moreover, multiple analysts and traders speculate that the upturn observed in late August could signal the conclusion of the bear market. While they anticipate at least one more correction before the next major climb, many believe $BTC could potentially reach $100,000 before the year’s end.
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