The key reason for this round being a contract bull market is the lack of upward volatility. For most altcoins, a major surge can yield a threefold increase, which is quite remarkable. Entering and exiting the market, a twofold increase is already incredibly precise, and for retail investors, a twofold increase in a bull market isn't exactly flattering, so leveraging contracts becomes necessary.

Furthermore, altcoins are almost always fluctuating up and down, with a threefold increase upward, but there’s no guarantee of a thirtyfold decrease downward, so to capture profits from the downturn, one must engage in contracts.

This situation has created a state where the spot market is in a bear phase while the contract market is in a bull phase, leaving ordinary small investors without anything to do if they don’t engage in contracts, forcing them to play in the contract market.

Previously, altcoins could easily yield tenfold returns without needing to touch contracts, but now it’s a necessity. Therefore, although the drop in this round has not been as significant as the drops of 519 or 312, the liquidation amounts far exceed those years, and that’s the reason behind it.

The above sharing is from Teacher Chen Jian, @陈剑Jason . The accompanying image shows my real backend rebate data for today.