Bitcoin has experienced liquidation levels comparable to those during the FTX collapse, driven by unprecedented market leverage rather than fraud or exchange failure. The market's open interest peaked at $47.5 billion, nearly three times the 2021 high, leading to a cascade of forced liquidations as prices dipped. This event highlights the aggressive leverage in the market, with over 9,000 BTC liquidated in a single day. Despite the volatility, analysts suggest this deleveraging phase could present medium-term opportunities, similar to post-FTX recovery. The market is showing signs of stabilization, with negative funding rates and increased spot trading indicating real buyer interest. However, experts caution that understanding risk management is crucial, as the crypto market remains lightly regulated and highly accessible, allowing for extreme leverage.