Bitcoin's Largest Deleveraging Event Driven by Crypto Traders Not Traditional Finance

Friday marked the largest liquidation event in crypto history on a nominal basis. The magnitude of this deleveraging becomes clear when examining open interest (OI) - the total value of unsettled futures and perpetual contracts. According to Glassnode's data, prior to Friday's significant sell-off, bitcoin open interest had reached unprecedented levels, indicating substantial leverage in the market. The analysis reveals that crypto-native traders, rather than traditional financial institutions, were the primary drivers behind this historic market correction and massive position unwinding.