麻子新
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Many people were stunned by this flash crash. Just last Friday, everyone was optimistic about Powell's speech, and over the weekend, $ETH broke through new highs, but within two days, the market plummeted across the board.
The core reason is: a large whale dumped 24,000 BTC onto the exchange, leading to a massive sell-off. Within twenty minutes, the market was smashed, and the price slid dramatically. By Tuesday, $BTC dropped to around $110,000.
The key issue is that a single large order itself is not scary; what’s scary is hitting the critical point of leveraged positions. Once the technical support level is broken, high-leverage long positions are forcibly liquidated in bulk, and the liquidation orders continue to slam the market, creating a vicious cycle. This wave saw about $500-800 million in long positions across the network liquidated.
Adding to the context: Bitcoin spot ETFs have seen a net outflow for six consecutive days, and last week, crypto products had a net outflow exceeding $14 billion, tightening the funding situation. The combination of a sell-off and outflows resulted in a bloodbath.
The hardest hit was still $ETH. Many people used a unified margin account; when BTC dropped, their equity shrank, leading to ETH long positions being liquidated as well. In fact, ETH was even “dragged down” when BTC fell, effectively taking the hit for BTC.
Moreover, market makers generally have combined positions for BTC/ETH. When BTC is at risk, ETH naturally has to reduce its positions as well.
So this wave can be broken down into:
Whale dumping → Leverage position stampede → Chain reaction of liquidations → Increased ETF fund outflows → BTC/ETH double kill.
Then $ETH stacked nearly $1 billion in liquidation positions around 4300.
If a new round of increases starts, a likely scenario would be——
👉 First, a needle to directly wipe out this batch of leveraged positions,
👉 After cleaning up the floating chips, then proceed to push upwards.
The core reason is: a large whale dumped 24,000 BTC onto the exchange, leading to a massive sell-off. Within twenty minutes, the market was smashed, and the price slid dramatically. By Tuesday, $BTC dropped to around $110,000.
The key issue is that a single large order itself is not scary; what’s scary is hitting the critical point of leveraged positions. Once the technical support level is broken, high-leverage long positions are forcibly liquidated in bulk, and the liquidation orders continue to slam the market, creating a vicious cycle. This wave saw about $500-800 million in long positions across the network liquidated.
Adding to the context: Bitcoin spot ETFs have seen a net outflow for six consecutive days, and last week, crypto products had a net outflow exceeding $14 billion, tightening the funding situation. The combination of a sell-off and outflows resulted in a bloodbath.
The hardest hit was still $ETH. Many people used a unified margin account; when BTC dropped, their equity shrank, leading to ETH long positions being liquidated as well. In fact, ETH was even “dragged down” when BTC fell, effectively taking the hit for BTC.
Moreover, market makers generally have combined positions for BTC/ETH. When BTC is at risk, ETH naturally has to reduce its positions as well.
So this wave can be broken down into:
Whale dumping → Leverage position stampede → Chain reaction of liquidations → Increased ETF fund outflows → BTC/ETH double kill.
Then $ETH stacked nearly $1 billion in liquidation positions around 4300.
If a new round of increases starts, a likely scenario would be——
👉 First, a needle to directly wipe out this batch of leveraged positions,
👉 After cleaning up the floating chips, then proceed to push upwards.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
