Last night, another major event occurred in the cryptocurrency market. $374 million in losses were wiped out across the entire network, leaving 130,000 people suffering heavy losses. This is no small number; it reflects a fierce battle between bulls and bears.
Ethereum $ETH suffered the most, with losses exceeding $1.8 million. WLFI, SOL, and DOGE were also among the casualties. Whether mainstream or altcoins, all are falling, and no one can claim to be stable.
Of particular note is the short position. Within four hours, short positions were wiped out by 11.42 million, significantly higher than long positions. But looking at the 24-hour period, both bulls and bears suffered, with short positions wiped out by 156 million and long positions by 229 million. What does this indicate? The market is experiencing volatile fluctuations, with sharp declines and rebounds, and both bulls and bears are being wiped out.
Most outrageously, someone lost $9.8 million on Binance in a single trading session. They were playing too big and taking too many risks.
Considering recent news, the Federal Reserve's policy swings, ETF funds flowing in and out, and the market's volatile ups and downs, many retail investors have become disoriented, and frequent trading has led to losses. The presence of the margin call heat map at this time is a direct warning: Don't get carried away, control your risk!
A few personal thoughts:
Margin call data is a sentiment indicator. A high number of short position calls suggests a short-term decline has overshot; a subsequent increase in long positions suggests a rebound may be imminent.
Don't go all in, and don't use high leverage. Use your spare cash and invest it in smaller amounts; survival is paramount.
After a wave of margin calls, there are often opportunities, and some people wait for bargains. But remember: don't blindly buy the dip; observe carefully before you act.
The cryptocurrency world isn't afraid of a volatile market; it's afraid of a broken mindset. Follow me, and let's look at the market calmly and make rational decisions together.
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