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Bitcoin Market Structure Update
The market has just witnessed the largest drop in Open Interest of the current cycle, with total OI falling sharply from around $45B down to $28B within a few days. This move does not signal the start of a bear market; rather, it reflects a major leverage washout (Long Squeeze) that cleared out overly extended positions. Despite the volatility, Bitcoin remains above the ETF average cost basis at $79K, and there has been no meaningful selling from institutional funds. The key structural level to watch remains $74,000. A weekly close below it would be the first sign of broader macro weakness.