Crypto market deleveraging is continuing for a third straight quarter, but it differs from the sharp collapses seen in the 2022 bear market, an analysis said. Galaxy Research said leverage is shrinking across the market at a relatively orderly pace, with recent quarterly declines of 10 percent, 5 percent and 17 percent. Total outstanding loans fell 16.78 percent to $56.16 billion, while DeFi and CeFi balances also declined.

Bitcoin financial services platform Strike has launched a bitcoin-backed loan product that does not trigger margin calls or price-based forced liquidation even if bitcoin prices fall sharply. The product reduces liquidation risk in bear markets but comes with higher interest rates of 10.7 to 14.2 percent, a six-month term and strict repayment requirements. If borrowers miss payments, they must pay within 10 days or contact Strike, or collateral may be liquidated.