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Promote with Leviathan NewsBitcoin and Ethereum derivatives markets saw a sharp deleveraging as futures open interest in both assets fell by about $1.37 billion, a move CryptoQuant analyst Alex (Axel) Adler Jr. describes as a leverage washout and partial market reset. The drop reflects traders closing or being forced out of leveraged positions amid elevated volatility and selling pressure in the broader crypto market. According to Adler’s on-chain and derivatives data, Bitcoin futures open interest declined by roughly $668 million, while Ethereum futures open interest fell by about $700 million, for a combined reduction of approximately $1.368 billion. This unwind is tied to liquidations and risk-off behavior, as traders reduce exposure after a period of intense speculative activity and price stress. Open interest measures the total value of outstanding futures contracts; a sharp decline typically signals that leverage is being flushed out as positions are closed or liquidated. Analysts characterize this move as a deleveraging-driven reset rather than full capitulation: speculative pressure in BTC and ETH derivatives has eased, but spot prices and key technical levels still need to stabilize before a clearer recovery trend can form. Reduced open interest can lower the likelihood of further forced liquidations and extreme squeezes in the short term, potentially leading to a more organic price discovery process. However, it also highlights how dependent recent market action has been on leveraged derivatives flows, underscoring ongoing fragility in crypto market structure. """
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blog.brevis.network ·
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Coindesk ·
𝕏/@Formachain ·
𝕏/@coffeedev ·
𝕏/@blockaid_ ·
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