The market has just witnessed the strongest wave of decline in Open Interest throughout this entire cycle.

This decline reflects the extent to which excessive leveraged positions have been wiped out, causing a major liquidation event for speculative groups and leverage.

Since the second quarter of 2024, we have seen three major liquidations, the first being a drop of 30%, followed by 35%, and now a significant drop of ~40%, the largest ever.

Interestingly, a clear pattern has emerged: every time Open Interest drops sharply, the next quarter sets new highs, and the price $BTC consistently follows that trajectory.

However, in the context of the past, that was when $BTC and the Market were in a bullish phase, so Investors had such expectations.

Currently, the market situation is far from the past, with a Downtrend mentality + weak Perform signs coming from the Market.

So if this pattern repeats once again, the next time could witness both Open Interest and Bitcoin price increasing at a retracement wave level.

AE is observing and reassessing whether there are any opportunities to scoop a bit.