eye

New #USGovShutdownEnd? #BuiltonSolayer Bitcoin whales realized over $1.3 billion in losses last week.The purge of excessive and speculative leverage can lay the foundation for a structural recovery.Bitcoin's ability to withstand the intense deleveraging suggests underlying accumulation from strong-conviction whales.Bitcoin is down 2% on Tuesday as the market decline over the past few days has triggered massive loss realization from new whales.
BTC Realized #ProfitPotential by Whales. Source: CryptoQuant
"Sustained losses of this magnitude suggest forced selling or panic-driven exits, typically driven by leveraged positions being unwound or loss aversion among late entrants," wrote MorenoDV.
This is evident in the 11.3% drop in Bitcoin's open interest (OI) over the past 7 days. While such a decline triggers increased fear, uncertainty and doubt (FUD), it presents a buying opportunity. The purge of excessive and speculative leverage could help lay the foundation for a structural recovery, another CryptoQuant analyst noted in a Tuesday report.
However, "the coming days will reveal whether this was a final shakeout or a prelude to deeper structural stress," MorenoDV added.
#EYE to Bitcoin trades around $103,000, down 2% on Tuesday, as investors eye the $100,000 key level.