Historic $19 Billion Collapse in the Bitcoin Market

Recently, the fluctuations in the Bitcoin (BTC) market continue to capture the attention of investors. According to Glassnode's data, the liquidation of open positions in Bitcoin futures over $19 billion represents the largest leverage cleanup in history. The market experienced a correction process characterized by sudden liquidations this weekend, and funding rates have dropped to the lowest levels since the bear market of 2022.

Although this sharp correction is concerning for some investors, it seems that the market is stabilizing afterward. The Relative Strength Index (RSI) and spot CVD indicators reveal that buying pressure has given way to heavy selling, while the amount of open positions in Bitcoin has notably decreased. This situation indicates that speculative risks have reduced and that highly leveraged positions have been cleared.

On the other hand, strong institutional demand continues to be noteworthy. According to Glassnode's analysis, ETF purchases by institutional investors are ongoing, and on-chain activity is also showing robust trends. However, the slowdown of market momentum and the increase in profit-taking are directing investors toward a more cautious consolidation phase. In this context, it is stated that a necessary readjustment process in the market outlook is taking place.

A key question for investors in the short term is whether the market can regain confidence and stability. In this environment of uncertainty, focus is on Bitcoin's critical support levels. For long-term investors, a decrease in profit-taking and sustained institutional demand may indicate a positive trend. However, in volatile market conditions, being cautious and conducting fundamental analyses becomes even more crucial.