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CryptoQuant: Market Deleveraging Approaching Critical Point, Analysts View as Buy Signal
According to CryptoQuant analyst GugaOnChain report, open interest (OI) in cryptocurrency markets has decreased by 11.32% over the past 7 days, approaching the key threshold of 12%, which is seen as a strong buy signal. This deleveraging indicates that the market is clearing excessive speculative leverage, and historically, such events are considered necessary for a market "reset" to health.
Bitcoin has experienced an 8% to 19% decline in open interest, with extreme cases seeing the total open contracts decrease by over $10 billion. Although current market sentiment may still be in "extreme fear," major financial institutions like JPMorgan believe that after large-scale leverage cleanup, Bitcoin has "significant upside potential." Analysts believe that the market is currently building a more stable foundation, creating favorable conditions for long-term investors.