Bitcoin Leverage Flush Wipes Out $8B in Open Interest as Whales Accumulate


A brutal leverage wipeout pushed Bitcoin into a “value zone,” with capitulating traders and mid-sized whales quietly buying the dip.

‘;
}

function loadTrinityPlayer(targetWrapper, theme,extras=””) {
cleanupPlayer(targetWrapper); // Always clean first ✅
targetWrapper.classList.add(‘played’);
// Create script
const scriptEl = document.createElement(“script”);
scriptEl.setAttribute(“fetchpriority”, “high”);
scriptEl.setAttribute(“charset”, “UTF-8”);

const scriptURL = new URL(`https://trinitymedia.ai/player/trinity/2900019254/?themeAppearance=${theme}${extras}`);
scriptURL.searchParams.set(“pageURL”, window.location.href);

scriptEl.src = scriptURL.toString();

// Insert player
const placeholder = targetWrapper.querySelector(“.add-before-this”);
placeholder.parentNode.insertBefore(scriptEl, placeholder.nextSibling);
}

function getTheme() {
return document.body.classList.contains(“dark”) ? “dark” : “light”;
}

// Initial Load for Desktop
if (window.innerWidth > 768) {

const desktopBtn = document.getElementById(“desktopPlayBtn”);
if (desktopBtn) {
desktopBtn.addEventListener(“click”, function () {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if (desktopWrapper) loadTrinityPlayer(desktopWrapper, getTheme(),’&autoplay=1′);
});
}
}

// Mobile Button Click
const mobileBtn = document.getElementById(“mobilePlayBtn”);
if (mobileBtn) {
mobileBtn.addEventListener(“click”, function () {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if (mobileWrapper) loadTrinityPlayer(mobileWrapper, getTheme(),’&autoplay=1′);
});
}
function reInitButton(container,html){
container.innerHTML = ” + html;
}

// Theme switcher
const destroyButton = document.getElementById(“checkbox”);
if (destroyButton) {
destroyButton.addEventListener(“click”, () => {
setTimeout(() => {
const theme = getTheme();
if (window.innerWidth > 768) {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if(desktopWrapper.classList.contains(‘played’)){
loadTrinityPlayer(desktopWrapper, theme,’&autoplay=1′);
}else{
reInitButton(desktopWrapper,’‘)
const desktopBtn = document.getElementById(“desktopPlayBtn”);
if (desktopBtn) {
desktopBtn.addEventListener(“click”, function () {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if (desktopWrapper) loadTrinityPlayer(desktopWrapper,theme,’&autoplay=1’);
});
}
}
} else {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if(mobileWrapper.classList.contains(‘played’)){
loadTrinityPlayer(mobileWrapper, theme,’&autoplay=1′);
}else{
const mobileBtn = document.getElementById(“mobilePlayBtn”);
if (mobileBtn) {
mobileBtn.addEventListener(“click”, function () {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if (mobileWrapper) loadTrinityPlayer(mobileWrapper,theme,’&autoplay=1′);
});
}
}
}
}, 100);
});
}
})();



Bitcoin (BTC) is showing tentative signs of stabilization after a turbulent month, with a massive $8 billion evaporation from futures markets signaling a painful but necessary cleansing of excessive speculation.

This dramatic leverage reset, combined with steady accumulation by larger investors, suggests the foundation for a potential recovery is being laid, even as prices tread well below recent peaks.

Bitcoin Price Mounts Necessary Market Reset

Over the past month, the cryptocurrency derivatives landscape underwent a significant transformation. Data from CryptoQuant indicates the total open interest in Bitcoin futures contracts dropped from approximately $37 billion to around $29 billion.

According to XWIN Research Japan, this sharp decline points to a widespread liquidation of leveraged positions, effectively forcing out over-optimistic traders and reducing systemic risk within the market.

The flush-out was accompanied by a notable shift in investor behavior. XWIN’s analytics revealed that mid-sized investors have been consistently adding to their holdings in the 10 to 1,000 BTC range. At the same time, short-term holders have been realizing substantial losses, exceeding $900 million daily, a classic indicator of market capitulation.

This period of stress has pushed key market value metrics into what the analysts termed a “value zone.” The MVRV ratio, which compares Bitcoin’s market cap to its realized cap, has fallen to 1.54, a level that has frequently coincided with price rebounds in the past.

The overall mood remains deeply pessimistic, with the Fear & Greed Index recently hitting a nine-month low. However, this negative sentiment appears at potential turning points, as shared by Ted Pillows, who noted that “capitulation precedes relief” and that seller exhaustion can create conditions for a bullish recovery.

You may also like:

Bitcoin Maps Path to Recovery, Price Range Back to $91,000

At the time of writing, Bitcoin’s price showed a 20% drop over the past month and is currently changing hands near $91,000. In the last 24 hours, the leading market cap crypto managed a 5% gain on a trading range situated between $86,500 and $91,800.

Market observers are closely watching specific price levels for clues on future direction. As noted by Daan Crypto Trades, a significant pocket of liquidity appears to have formed in the $97,000 to $98,000 zone, a region that previously witnessed heavy selling.

Reclaiming the $93,000-$94,000 area is seen by some as the step before the path towards a psychologically important $100,000 mark.

SPECIAL OFFER (Exclusive)

SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).

Source: https://cryptopotato.com/bitcoin-leverage-flush-wipes-out-8b-in-open-interest-as-whales-accumulate/