2026-01-01 12:20:14

Recently, the crypto world has seen another intense event. Bitcoin was forcibly pushed down to $83,973, a single-day drop of over 8%, shrinking more than one-third from the $126,300 high set in October. For a time, voices claiming the "bull market is over" flooded the scene.

Having been in this industry for many years, I’ve experienced numerous cycles. Honestly, this sharp decline looks fierce, but it’s definitely not the opening act of a bear market—it’s more like an opportunity handed to rational investors by the market.

So why did this drop happen so rapidly? It’s not just one or two reasons. The U.S. Treasury Department withdrew about $200 billion from the market due to the government shutdown, which is like suddenly cutting off the market’s blood supply. The Federal Reserve also has no intention of cutting interest rates quickly, making dollar liquidity even tighter, with high-risk assets like Bitcoin bearing the brunt.

But the most critical issue is internal market leverage. Many people borrowed money to buy coins at high levels, and once the price fell below certain key levels, automatic forced liquidations triggered a chain reaction. A small dip → margin calls → more liquidations → further price drops → a new round of liquidations. This vicious cycle was formed. Just on December 1st alone, over 190,000 positions were liquidated, totaling $553 million. That number is quite staggering.

How scary is this recent crash? Objectively speaking, Bitcoin’s fundamentals have not collapsed. What truly collapsed are the dreams of high-leverage players and the market’s short-term sentiment.

BTC0,45%

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BasementAlchemist

· 9h ago

Oh no, another crash. Those high leverage traders really deserve to be wiped out this time. Is it another chain reaction of forced liquidations? I'm tired of it already; the market keeps teaching retail investors the same lesson over and over. As long as the fundamentals are fine, that's good. Anyway, I see this as a good opportunity to buy the dip, just waiting for those who are forced to sell to exit. Wait, is there support at the 83,973 level? Feels like it could go even lower. The market is just a casino; those who trade without leverage are the ones truly alive. With the US dollar so tight, BTC was bound to fall; that's normal, nothing to be surprised about. 5.53 billion in liquidation? That's hilarious. Days like this happen every month; just get used to it. Basically, it's just fiscal draining combined with leverage explosions—an old routine. Next time will be the same. After this drop, real opportunities will come, but only if you survive and wait for the bottom.

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LiquidityWizard

· 01-01 22:18

actually the leverage cascade they described is textbook—19 million in liquidations on a single day is statistically significant but not historically unprecedented, given we saw similar magnitudes in may '21... mathematically speaking the real issue is liquidity depth deterioration, not the drawdown itself

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GlueGuy

· 01-01 12:50

Once again, the old trick of leverage liquidation, it's satisfying to see 190,000 people get wiped out.

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PerennialLeek

· 01-01 12:50

Haha, it's the same old story again. 190,000 people liquidated with 500 million USD. This wave of retail investors getting harvested is really intense.

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OvertimeSquid

· 01-01 12:46

Another round of leverage liquidations, those who bought the dip at high prices are going to eat dirt again. This is the crypto world; anyone hoping to win by just lying back should wake up. --- It was just a feint; don’t be scared into selling your assets in this wave of panic. The real bottoming opportunity is coming. --- A liquidation amount of 530 million, just hearing it sounds outrageous. Those brothers playing with leverage this time have learned a hard lesson. --- If the fundamentals are solid, don’t be afraid; keep accumulating coins. Short-term sentiment can fluctuate wildly, but it will come back. --- Again talking about bottoming opportunities? I think it still needs to fall further. With the Federal Reserve’s current stance, liquidity isn’t loose enough—who dares to buy in? --- 19,000 people liquidated in one day... The crypto world is indeed a game of high risk and high reward. If you can’t play, just be honest and hold your coins, everyone. --- Is this the start of a bear market? Nonsense. This is just the market clearing out trash and eliminating the leeks, nothing unusual.

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tx_pending_forever

· 01-01 12:43

It's the old trick of leverage liquidation again. With 190,000 people being liquidated, I really can't take it anymore.

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ImpermanentSage

· 01-01 12:42

190,000 people burst 553 million, which is the real harvest scene

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GasFeeCrybaby

· 01-01 12:38

Another bloodbath spectacle, 190,000 people liquidated... That's why I never use leverage, and my sleep quality stays intact.

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SchrodingersFOMO

· 01-01 12:26

Another good show of leverage liquidation, let's see who gets liquidated this time. The guys who borrowed money to buy coins at high prices are probably having a hard time sleeping. The 190,000 liquidations are indeed shocking. Basically, it's emotional trading; the fundamentals are still there. Maybe it's time to pick up some bargains. The Federal Reserve's no-rate-cut move was really harsh; the US dollar is truly a bloodsucking machine. A drop of over one-third sounds scary, but in reality, it's a moment of celebration for opportunists. $553 million in liquidations—how many people's dreams are shattered? Laughing and crying. Where is the bottom? It's really hard to say, but this is definitely not the end. Every time they say a bear market is coming, and yet... after so many years playing this game, it's still the same routine.

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