Let’s review yesterday's decline
Last night, there were no adverse fundamental or capital market factors. In fact, a Russian lawmaker even proposed using strategic reserves to buy Bitcoin, MicroStrategy increased its holdings by purchasing another 21,550 Bitcoins for $2.1 billion, and Donald Trump's second son commented that rational regulation would make the United States a crypto hub. Additionally, the moderately loose monetary policy in the domestic market yesterday afternoon was also favorable for crypto. In short, with so many positive factors combined, traders relaxed their vigilance and felt at ease opening long positions overnight, which led to such a high amount of liquidation tragedy.
One website reported that the number of liquidations across the network exceeded 572,000, five times more than the 100,000 liquidations in March 2020, and the liquidation amount in 24 hours set a record of 1.75 billion.
