On September 7, 2026, CryptoQuant analyst Darkfost reported that Bitcoin has gone through its sharpest deleveraging phase since 2023. During the sell-off, Bitcoin open interest on Binance briefly fell below its 180-day moving average, indicating that a large number of leveraged positions had been forcibly flushed from the market.
The move coincided with one of the largest liquidation events in Bitcoin’s history, reducing excessive leverage across futures markets. According to Darkfost, such deleveraging events often reset market positioning by forcing overleveraged traders to exit.
Following the liquidation wave, Binance’s Bitcoin open interest recovered to approximately $9.6 billion, above the 180-day average of $8.3 billion. Binance now accounts for roughly 37% of Bitcoin’s total open interest, highlighting the exchange’s dominant role in BTC derivatives trading.
Despite the recovery, Darkfost warned that a rapid buildup in leveraged positions could eventually trigger another sharp deleveraging event. Traders are likely to keep monitoring open interest, funding rates, and liquidation data as Bitcoin’s rebound unfolds.
