Mignolet2025-02-03

coin market has been definitely cleaned out.

BTC price drop shock has led to the largest liquidation of long positions in recent times. We’ll need to see the daily data close, but some are comparing this to the shock levels of FTX and the COVID crash. Looking at the data in the first image, this is the largest liquidation volume since September 2023. It clearly shows how many people were highly confident and full of expectations. market shock is immense compared to Bitcoin’s decline. Naturally, the market has been cleansed, and the open interest trend has finally broken down (see the second image). This kind of shock is appearing for the first time since August last year. Meanwhile, signs of aggressive buying in response to this price drop can be seen in the CPG (Coinbase Premium Gap) data (see the third image). Someone is absorbing the liquidity from the shock. While sentiment is rapidly contracting, the market has been thoroughly cleansed. Although we may see a period of high volatility, I believe whales are likely to move in the opposite direction eventually.