**[Bitfinex Alpha: The Crypto Market May Be Approaching a Cyclical Bottom]**
Bitfinex Alpha stated in an article that, from a time perspective, the crypto market may be nearing a cyclical bottom, although it remains to be seen whether prices have truly bottomed out. The market has shown signs of extreme deleveraging, panic selling by short-term holders, and exhaustion of selling pressure. On-chain data indicates that the adjusted Spent Output Profit Ratio (aSOPR) has fallen below 1 for the third time since early 2024, resembling previous cycle lows. Meanwhile, the "entity-adjusted realized loss" metric has surged to $403.4 million per day, surpassing previous low levels, suggesting that panic selling may be nearing its end.
Derivatives data shows that Bitcoin futures open interest has dropped to $59.17 billion, down from the peak of $94.12 billion, indicating that leveraged positions are being cleared in an orderly manner. The market is transitioning into a more stable consolidation phase.