Data: Bitcoin decline driven by derivatives liquidation

According to on-chain data, the recent decline in Bitcoin prices is primarily driven by forced liquidations in the derivatives market, rather than sell-offs in the spot market. The root cause lies in the accumulation of high-leverage long positions in the futures market. When prices fall below key levels, these positions hit maintenance margin requirements and are forcibly liquidated. Liquidations are executed at market price sell orders, increasing sudden selling pressure and further driving down prices.

The key point is that liquidations are not only a result of price declines but also act as an "amplifier." Even a slight initial drop can trigger a chain reaction of forced sell-offs, with one liquidation leading to the next. Therefore, this round of decline should be viewed as a structural deleveraging event rather than a collapse in fundamental demand.