Bitcoin's Downward Trend: A Sign of Deleveraging or a Permanent Weakening?

Bitcoin's recent decline has been a subject of much discussion in the financial community. The cryptocurrency fell nearly 7% over the past 24 hours, testing the $66,000 level. This downturn is largely attributed to the unwinding of leveraged positions and net outflows from U.S. spot Bitcoin ETFs.

On-chain data suggests that addresses holding between 10 and 10,000 Bitcoins collectively reduced their holdings by approximately 24,600 BTC over the past week, while smaller addresses registered only marginal net purchases. Aggressive buying demand has been exhausted for now, with net active buying volume turning negative on the 30th.

The market is currently focused on the deleveraging process, which appears to be a systematic purge of speculative risk rather than a structurally driven collapse led by sellers. Open interest (unwound leveraged positions) has declined by over 20% from its peak, moving in tandem with price.

Experts warn that predicting an exact market bottom or blindly buying the dip is not advisable. Instead, investors should focus on adjusting their positions based on verifiable indicators, such as a positive net active buying volume and net inflows into spot Bitcoin ETFs.