Bitcoin News

Story: Bitcoin Poised for Rebound as Leverage Clears and Confidence Rebuilds

By James Thorp

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Leverage Unwinding Drives Volatility, Not Weak Fundamentals. According to Devere Group CEO Nigel Green, Bitcoin’s latest $1 trillion drawdown is being driven…

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Macro Pressures Weigh on Sentiment but Not on Market Structure. The broader macroeconomic backdrop is amplifying short-term market stress.

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Historical Patterns Suggest Swift Rebounds After Leverage Clears. Devere Group’s assessment points to a common pattern seen across multiple crypto cycles: when…

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Confidence Expected to Rebuild Once Excess Risk Is Removed. Green believes confidence could return sooner rather than later, especially as traders complete…

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Supporters See Deleveraging as a Healthy Reset for Market Structure. Despite the short-term pain, many digital asset supporters argue that leverage flushes ultimately…

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Bitcoin’s recent downturn has triggered a sweeping reset across leveraged positions, driving market volatility but also laying the foundation for a potential rebound.

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According to Devere Group CEO Nigel Green, Bitcoin’s latest $1 trillion drawdown is being driven primarily by aggressive liquidations in leveraged trades.

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“This is leverage being cleared out,” Green said. “When traders borrow heavily to magnify positions, any reversal triggers liquidations that accelerate the move.”

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He emphasized that the sell-off should not be interpreted as a breakdown in Bitcoin’s long-term investment thesis.

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“The long-term case for bitcoin, among other major digital assets, remains intact,” Green added.

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The broader macroeconomic backdrop is amplifying short-term market stress. Green noted that investors remain concerned about job markets, whether the ongoing surge in artificial…

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“People are worried about jobs, about whether the AI and tech surge can keep its pace, about tariffs, and about upcoming Fed policy decisions,” he said.

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In other words, macro uncertainty is influencing trader psychology, but it has not undermined the foundational forces that support long-term digital asset growth.

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Devere Group’s assessment points to a common pattern seen across multiple crypto cycles: when leverage flushes out, markets often stabilize more quickly than expected.

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“History teaches us that these phases have reversed faster than expected once the pressure points begin to ease,” Green said.

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