Bitcoin 8 Billion Dollar Decline…Not Fear But 'Leverage Reset', Rebound Opportunity Remains

Bitcoin has recently fallen for 5 consecutive days, dropping from a peak of 110,000 Dollars to around 104,000 Dollars, but this adjustment is analyzed not as a simple downtrend, but as a 'leverage reset'. The cryptocurrency media outlet AMB Cript offered the interpretation that this decline is a liquidity adjustment due to the excessive clearing of derivative positions rather than a general market downturn.

As of May 23, Open Interest in bitcoin derivatives recorded an all-time high of 80 billion Dollars, but plummeted to about 71.8 billion Dollars in just a week. This means that approximately 8 billion Dollars in leverage was forcibly liquidated and exited the market. It is evaluated that the sharp decline is closer to pressure relief from leverage resolution rather than panic selling out of fear.

Similar movements were detected in the spot market. On May 29 alone, 8,175 BTC exited wallets, but this is interpreted as accumulation for long-term holdings. There are signals that some investors are seeing this decline as a buying opportunity.

However, the fact that BlackRock stopped its net buying flow for 52 consecutive days and sold 4,100 BTC, and Bybit's funding rate turned negative for the first time in a month, is cited as evidence that macro uncertainty is being reflected. Despite news of Trump Media buying Bitcoin worth 2.5 billion Dollars, external factors such as tensions in US-China trade are dampening investor sentiment.

Currently, Bitcoin is hovering in the low range of 100,000 Dollars without forming a clear support line, and whether it recovers in the 102,000-105,000 Dollar range is expected to be a key variable determining the future direction.

In the end, this decline is seen as a market cleansing process of shedding excessive leverage rather than distributed selling, and if the macro environment stabilizes, it could be the starting point for a rebound rally.