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

BlockBeats News, November 6th, Bitfinex released a report stating that in the past two days, the total amount of Bitcoin long liquidation exceeded 2.8 billion US dollars, while the price of Bitcoin fell by over 10.4% during the same period, breaking below the October 10th low to $99,045. The overall market capitalization decreased by 280 billion US dollars. This deleveraging event is similar to the adjustment in April, indicating that leverage and high valuations are being cleared out, but it also implies that the market may have bottomed out.

This decline may be due to the market's reduced expectations of a rate cut in December and risk-off sentiment triggered by Bitcoin's continued weakness compared to the stock market (which has been rising due to a strong earnings season).

However, once the price finally drops below the key $100,000 mark, buyers start entering 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, below the early October's 92 billion US dollars. The outlook remains optimistic, and if ETF inflows resume, it will form an accumulation zone.