CEX Report: Bitcoin long positions liquidated over $2.8 billion in the past two days, and deleveraging may be nearing its end.

On November 6, CEX released a report stating that over the past two days, Bitcoin long positions have been liquidated for a total of more than $2.8 billion, while the Bitcoin price has fallen by more than 10.4%, breaking below the low of October 10, to $99,045. The overall market capitalization has decreased by $280 billion. This deleveraging event is similar to the adjustment in April, indicating that leverage and overvaluation are being cleared, but it also suggests that the market may have hit bottom. This drop may be due to the market's lowered expectations for interest rate cuts in December and the ongoing weakness of Bitcoin relative to the stock market (which has risen due to a strong earnings season), leading to a risk-averse sentiment. However, once the price eventually falls below the key $100,000 threshold, buyers begin to get on board, indicating that the deleveraging phase is coming to an end, as the total open contracts have also dropped to $69.3 billion, down from $92 billion in early October. The outlook remains optimistic; if ETF fund inflows resume, it will create an accumulation zone.