《160,000 Traders Exit: How a $900 Million Crypto Liquidation Wave Exposed the Fatal Flaw of High Leverage?》

Within 24 hours, the crypto market suffered a liquidation storm: $900 million in funds 'evaporated', with over 85% being long positions, and approximately 160,000 traders exited due to account zeroing. The core of this 'black period' lies in the hidden dangers posed by high leverage.

The trigger was the price correction of Bitcoin and Ethereum, but the real driving force was the long-term accumulation of high leverage in the market. A slight price drop triggered the liquidation line for long positions, leading to a massive amount of forced liquidations turning into selling pressure, further driving down prices—thus forming a 'downward-liquidation-downward' 'liquidation spiral', with the chain reaction intensifying.

The distribution of risk is also worth noting: the three major derivatives exchanges—Binance, OKX, and Bybit—became the hardest hit areas, with Bitcoin and Ethereum contracts being the main targets; SOL, DOGE, and other altcoins also saw mass liquidations, indicating that speculative sentiment has spread throughout the entire crypto market.

For the market, this is a 'short pain for long adjustment': in the short term, liquidity tightens, sentiment falters, and price volatility makes trading more difficult; but in the long run, the deep deleveraging has squeezed out irrational funds and exposed the structural issue of 'derivative influence overshadowing spot', potentially forcing the market to become more rational.

For investors, the lesson is clear: leverage is a 'double-edged sword', and one must control positions and avoid speculation; now is the time to wait for the market to find a bottom.

The market may subsequently enter a repair period, with volatility and trading volume likely to ease. The movements of on-chain whales and the flow of funds in exchanges will be signals for stabilization. Although the process is tough, this deleveraging may be a necessary step for the crypto market towards maturity. $BTC $XRP $ETH #加密市场回调 #比特币远古巨鲸持续出清