The key reason for this round being a contract bull market is that there is no upward volatility. Most altcoins can only experience a surge of 3 times at most during a major rally, and for retail investors, achieving a 2 times increase in a bull market is already exceptional, which makes it feel like an insult. Therefore, leveraging contracts becomes necessary. Moreover, altcoins often exhibit a pattern of rising and falling continuously, with potential to rise 3 times but the possibility of dropping 30 times, so to capture downward returns, trading contracts is essential.

This situation has resulted in a state of a bear market in spot trading and a bull market in contracts, where ordinary small investors who do not trade contracts find themselves with nothing to do and are compelled to engage in contract trading.

Previously, altcoins would easily surge tenfold, making contract trading unnecessary, but now it has become unavoidable. Thus, although the declines in this round have not been as severe as those of May 19 or December 31, the liquidation amounts have far exceeded those years, and this is the reason behind it.