The post Bitcoin – Explaining why BTC’s price drop isn’t what it seems appeared on BitcoinEthereumNews.com. Key Takeaways How severe was Bitcoin’s latest drop? Despite the sell-off, 90% of the BTC supply remained in profit, showing limited panic or forced exits. What triggered the correction? Excess leverage caused $132 million in short liquidations, but long-term holders stayed composed, keeping BTC’s base stable. Bitcoin’s [BTC] latest sell-off looked steep, yet it did not mirror the panic collapses seen in 2022’s Luna or FTX crashes. The evidence points to a leverage reset, not a crisis of confidence. Over 90% of BTC’s supply is still in profit Glassnode’s data showed that over 90% of Bitcoin’s circulating supply remained in profit despite the recent decline. That divergence indicated most realized losses came from overexposed traders and top buyers, rather than long-term holders. That is a critical distinction, as it suggests that the correction was structural rather than emotional. Source: Glassnode No sign of 2022-style capitulation During the Luna and FTX collapses, the Percent Supply in Profit metric fell below 65%, marking panic-driven capitulation phases. Those were textbook capitulations — moments when everyone rushed for the exits. This time, the setup was completely different. The recent decline wasn’t fueled by fear or spot holders selling under pressure. Instead, it stemmed from excessive leverage in the derivatives market, which eventually had to unwind. As the market moved against overexposed traders, their forced liquidations triggered a rapid, mechanical chain reaction – sharp and sudden, but not emotionally driven. Source: X Leverage unwound, not confidence CryptoQuant’s Short Liquidations data revealed that around $132 million worth of shorts were liquidated near the $112,000 price zone. That cascade wiped out over-leveraged traders and dragged prices lower, but it also helped reset the market structure. The short-squeeze was a clear sign that the market flushed out excess leverage and set a cleaner base for the next phase.… The post Bitcoin – Explaining why BTC’s price drop isn’t what it seems appeared on BitcoinEthereumNews.com. Key Takeaways How severe was Bitcoin’s latest drop? Despite the sell-off, 90% of the BTC supply remained in profit, showing limited panic or forced exits. What triggered the correction? Excess leverage caused $132 million in short liquidations, but long-term holders stayed composed, keeping BTC’s base stable. Bitcoin’s [BTC] latest sell-off looked steep, yet it did not mirror the panic collapses seen in 2022’s Luna or FTX crashes. The evidence points to a leverage reset, not a crisis of confidence. Over 90% of BTC’s supply is still in profit Glassnode’s data showed that over 90% of Bitcoin’s circulating supply remained in profit despite the recent decline. That divergence indicated most realized losses came from overexposed traders and top buyers, rather than long-term holders. That is a critical distinction, as it suggests that the correction was structural rather than emotional. Source: Glassnode No sign of 2022-style capitulation During the Luna and FTX collapses, the Percent Supply in Profit metric fell below 65%, marking panic-driven capitulation phases. Those were textbook capitulations — moments when everyone rushed for the exits. This time, the setup was completely different. The recent decline wasn’t fueled by fear or spot holders selling under pressure. Instead, it stemmed from excessive leverage in the derivatives market, which eventually had to unwind. As the market moved against overexposed traders, their forced liquidations triggered a rapid, mechanical chain reaction – sharp and sudden, but not emotionally driven. Source: X Leverage unwound, not confidence CryptoQuant’s Short Liquidations data revealed that around $132 million worth of shorts were liquidated near the $112,000 price zone. That cascade wiped out over-leveraged traders and dragged prices lower, but it also helped reset the market structure. The short-squeeze was a clear sign that the market flushed out excess leverage and set a cleaner base for the next phase.…