Bitcoin's recent price drop was primarily due to excessive leverage in derivatives markets rather than panic selling, according to data from AMBCrypto. Despite the decline, over 90% of Bitcoin's supply remained in profit, and long-term holders did not transfer their funds to exchanges, suggesting a mature market response. The market saw short liquidations amounting to $132 million, with significant activity around the $112,000 mark. This correction is viewed as structural, driven by market mechanics rather than emotional reactions from investors.