Bitcoin’s Massive Leverage Purge Fuels Potential Rebound to $80K by 2026

Bitcoin’s open interest (OI) has experienced a dramatic plunge, dropping by over 20% to reach $30 billion. This decline is the largest in recent history and signals a major unwind of leveraged bets on the cryptocurrency. Historical patterns indicate that this type of OI drop precedes significant price rebounds rather than market downturns. Analyzing the data reveals several key factors driving Bitcoin’s potential surge: The latest OI drop, signaling the unwinding of long positions, is followed by growing institutional investment and a steady influx of new money into the market through ETFs like BlackRock’s tokenized funds.