Bitcoin has undergone its most severe deleveraging (reduction of borrowed trading exposure) since 2023, with Binance’s open interest (active derivatives positions) falling below its 180-day average. The adjustment followed forced closures or liquidations of heavily leveraged positions and coincided with the largest liquidation event in Bitcoin’s history, according to CryptoQuant analyst Darkfost. Binance still has $9.6 billion in open interest, above its $8.3 billion 180-day average and equal to about 37% of total Bitcoin open interest. Traders have re-entered the market and helped Bitcoin rebound, but elevated leverage could trigger another sharp deleveraging episode.