The recent surge in Bitcoin’s price correction has been attributed to a significant deleveraging event, where traders who had excessively borrowed funds for large bets were forced to liquidate their positions. This process effectively wiped out over-leveraged positions across exchanges, leading to a more organic buying and selling dynamics rather than the speculative hype driven by previously leveraged activities. This deleveraging is often referred to as a market reset. Historical analysis suggests these kinds of events can signal a potential long-term bullish trend in Bitcoin. 2020 and mid-2021 saw similar occurrences, which subsequently led to significant bull runs. While short-term volatility may persist, it’s believed that the forced exits of over-leveraged players often set the stage for sustainable price growth as those who buy and hold gain an advantage in a less crowded market.