Bitfinex Report: The total amount of Bitcoin long liquidations in the past two days exceeds 2.8 billion dollars, and deleveraging may be nearing its end

Bitfinex released a report indicating that in the past two days, the total liquidation of Bitcoin longs exceeded $2.8 billion, while the Bitcoin price dropped over 10.4%, falling below the low of October 10 to $99,045. The overall market capitalization decreased by $280 billion. This deleveraging event is similar to the adjustment in April, suggesting that leverage and overvaluation are being cleared, but it also hints that the market may have reached a bottom.

This decline may be due to reduced market expectations for interest rate cuts in December, as well as risk-averse sentiment triggered by Bitcoin's continued weakness relative to the stock market (which has risen due to strong earnings season). However, once the price finally broke below the critical $100,000 level, buyers began to enter the market, indicating that the deleveraging phase is nearing its end, as the total open contracts have also dropped to $69.3 billion, down from $92 billion at the beginning of October. The outlook remains optimistic, and if ETF inflows resume, it will create an accumulation zone.