This drop is actually a necessary cleansing for the market. On one hand, this volatility has helped identify and fix potential issues at the system level of exchanges, including Binance, reducing the likelihood of larger risks in the future. On the other hand, it has facilitated a new round of deleveraging across the market. From the data, we can clearly see that BTC's open interest has dropped significantly in a short period of time. While it hasn’t yet hit the lowest level in nearly a year, it’s not far off. ETH’s leverage cleanup is also looking good, with open interest down about 30% from its peak. This means a large number of speculative positions in the market have been cleared, either passively or actively. Although prices are under short-term pressure, this type of drop is more about technical liquidation rather than a deterioration in fundamentals. Structurally, both BTC and ETH prices are consolidating at relatively high levels, and the withdrawal of leveraged funds means the sources of volatility are decreasing, which in turn lowers the probability of large price swings for BTC and ETH. Once the market completes this deleveraging process, new leverage capacity will gradually reopen. Typically, during this phase, prices tend to stabilize and are more likely to move upward. In plain terms, this round of deleveraging has actually made the market healthier and strengthened the spot support for BTC and ETH, potentially creating more room for price increases. Sponsored by Bitget ｜ @Bitget_zh