Research firm K33 has announced that the cryptocurrency market has entered a healthier phase following a significant deleveraging event in derivatives markets last week. According to K33's research director, Vetle Lunde, this market reset is 'constructively bullish,' as it has cleared months of excessive leverage, setting the stage for a potential upward trend.
Lunde highlighted that while the structural impact of deleveraging might lead to thin liquidity during the recovery from forced selling, such phases historically result in short-term stagnation and cautious trading. However, they also often mark market bottoms and pave the way for long-term recovery.
K33 Reports Crypto Market Healthier After Major Deleveraging
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