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Bitcoin just faced largest deleveraging since 2023
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Bitcoin (BTC) experienced one of its largest deleveraging phases on record and the biggest since 2023 in 2026, per the analysis shared on X by CryptoQuant’s Darkfost early on September 7.
Indeed, according to the cryptocurrency expert, the preceding futures-dominated cycle led to a significant reduction in positions backed by borrowed money, with the year’s volatility ensuring that both short and long bets that became ‘too heavy’ got liquidated.
Darkforst highlighted that the overall phase saw one of its starkest moments when BTC open interest on Binance fell below its 180-day average.
He, however, also highlighted that the liquidations failed to fully eliminate leverage and that, by the time of his X post, levels remained elevated. For example, Binance open interest again increased after the brief plunge and stood at $9.6 billion at the time. The 180-day average is at $8.3 billion.
Still, the expert also noted that the phase was ‘necessary’ for Bitcoin and that, despite it being ‘tough on traders’, more recent data hints at a bullish rebound for the world’s premier cryptocurrency. He, however, also urged caution since the recent resurgence in open interest also raises the risk of a new deleveraging event.
2026 Bitcoin price performance
Meanwhile, examining BTC performance through 2026 makes it relatively to see why both the long and short positions suffered from extensive liquidations.
Specifically, though the cryptocurrency is 8.56% in the red year-to-date (YTD), it has also experienced multiple bullish turns – most notably in mid-January, April and early May, and late August.
The most recent upsurge is simultaneously arguably the most interesting. Indeed, Bitcoin rapidly soared more than 25% and, though it has retraced somewhat from the latest highs above $80,000 and to $79,931 at press time, it also managed to break out of the range between roughly $60,000 and $66,000 it has spent most of the summer in.
Additionally, multiple traders, analysts, and other observers estimate that the late August upsurge might signify the end of the bear market and, despite anticipating at least one more correction before the next breakout, assess that BTC might soar as high as $100,000 before the end of the year.
Featured image via Shutterstock
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