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

According to market news, analyst GugaOnChain reports that the open interest (OI) in the cryptocurrency market has decreased by 11.32%, approaching the key threshold of 12%, which is seen as a strong buy signal.

This deleveraging represents the market clearing excessive speculative leverage, and historically, such events are considered a necessary process for a healthy market "reset." Bitcoin has previously experienced OI declines of 8% to 19%, with extreme cases seeing total open interest drop by over $10 billion. Although the current market sentiment may still be in a state of "extreme fear," major financial institutions like JPMorgan believe that after a large-scale clearing of leverage, Bitcoin has "significant upside potential." Analysts suggest that the current market is building a more stable foundation, creating favorable opportunities for long-term investors.