In the past 24 hours, the cryptocurrency market has seen over $700 million in liquidations, with long positions liquidated nearly $500 million and short positions only at $54.63 million, resulting in a long-short ratio as high as 9:1.
More than 130,000 traders were affected, with Bitcoin falling below $113,000 and Ethereum dropping over 5%.
Leading exchanges like Binance and OKX have significant liquidation volumes, indicating a clear accumulation of market leverage. The panic index has surged rapidly, and investor sentiment has sharply turned cautious, greatly increasing selling pressure in the short term.
However, historical data shows that such large-scale liquidations often signal short-term market bottoms, potentially leading to a rebound.
At the same time, institutional investors remain calm, with no signs of panic selling in the spot market, indicating that the market fundamentals remain stable.
Overall, this liquidation event may provide a healthy adjustment opportunity for the market. Long-term investors should rationally manage leverage to reduce risks associated with high volatility.
