Deleveraging Event

A deleveraging event is a sharp, market-wide drop in open interest as leveraged positions are liquidated or closed in a short window — a cascade at scal…

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What is Deleveraging Event in crypto trading?

A deleveraging event is a sharp, market-wide drop in open interest as leveraged positions are liquidated or closed in a short window — a cascade at scale. Price overshoots because the selling is forced, funding resets toward zero, and the market that emerges has far less leverage in it. They mark local extremes more reliably than most signals.

Crypto Jargon

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