Bitfinex Report: Bitcoin Sees Over $2.8 Billion in Long Liquidations in Past Two Days, Deleveraging May Be Nearing End

On November 6th, Bitfinex issued a report indicating that in the previous two days, the total amount of Bitcoin long liquidation reached more than 2.8 billion US dollars. During the same period, the price of Bitcoin dropped by over 10.4%, breaking below the low on October 10th to $99,045. The overall market capitalization decreased by 280 billion US dollars. This deleveraging event is similar to the adjustment in April, suggesting that leverage and high valuations are being cleared out, but it also implies that the market may have reached a bottom. This decline may be attributed to the market's lower expectations of a rate cut in December and risk-off sentiment triggered by Bitcoin's continuous weakness compared to the stock market (which has been rising due to a strong earnings season). However, once the price finally falls below the key $100,000 mark, buyers begin to enter the market, indicating that the deleveraging phase is coming to an end as the total value of open interest has also dropped to 69.3 billion US dollars, which is below the 92 billion US dollars in early October. The outlook remains optimistic. If ETF inflows resume, it will form an accumulation zone.