According to CryptoQuant, Bitcoin liquidations on Binance reached their highest monthly levels since 2021 over the past three months, while the dollar value of open interest fell 17% in less than a month.
According to data shared by CryptoQuant, Bitcoin liquidations on Binance exceeded $1.4 billion in August, totaled $1.1 billion in September, and reached $1.3 billion in October. Before the first half of November was over, the total liquidation amount had surpassed $520 million.
Bitcoin open interest falls to $8.8 billion
The total value of Bitcoin positions that had not yet been closed on Binance fell from $10.6 billion to $8.8 billion. During the same period, the 180-day average rose from $8.4 billion to $8.6 billion. CryptoQuant attributes the decline in open interest to investors closing their positions or being liquidated.
What changes when leverage declines?
According to CryptoQuant, a decline in leveraged positions can reduce the risk of one liquidation triggering others and make direct Bitcoin purchases more effective in moving the price. The platform recalled that a similar decline in leverage occurred in June, when Bitcoin was below $60,000, and that the price later rose above $87,000.
Not investment advice.