📉➡️📈 K33: Market Deleveraging Clears the Path for a Healthier Crypto Cycle

🔹 K33 Research, a leading digital asset analysis firm, has stated that the recent massive deleveraging event across crypto derivatives has reset market structure — paving the way for a “constructive bullish” phase.

🔹 Insights

▪️ Structural Clean-up: Excessive leverage built up over months has now been cleared, reducing systemic risk and creating a more stable foundation for upcoming cycles.

▪️ Healthy Reset: Forced liquidations and thin liquidity phases often precede long-term recovery and fresh accumulation zones.

▪️ Historical Pattern: K33 notes that post-deleveraging periods tend to show short-term stagnation, followed by renewed uptrends as confidence returns.

💬 Vetle Lunde, Research Director at K33:

“From historical data, deleveraging often signals a market bottom and nurtures the conditions for long-term recovery.”

📊 Market Context:

Last week’s liquidations were among the largest in recent years, shaking leveraged positions but strengthening organic market health.

💡 Takeaway:

The current phase marks a structural rebalancing, not weakness.

Patience now could be key — a healthier, more sustainable bullish cycle may be forming beneath the surface.

#CryptoMarket #Deleveraging #K33Research