Data: Bitcoin's decline was driven by derivatives liquidation.

According to Mars Finance, on-chain data indicates that the recent decline in Bitcoin prices was primarily driven by forced liquidations in the derivatives market, rather than a sell-off in the spot market. The root cause lies in the accumulation of highly leveraged long positions in the futures market. When prices fell below key levels, these positions triggered margin requirements and were forcibly liquidated. The liquidations were executed with market sell orders, increasing sudden selling pressure and further depressing prices. Crucially, the liquidations were not merely a result of the price decline, but rather an amplifier. Even a small initial drop could trigger a chain reaction of forced selling, with one liquidation leading to another. Therefore, this round of decline should be viewed as a structural deleveraging event, rather than a collapse in fundamental demand.