Bitcoin plummets, 220,000 people liquidated across the network, what happened?
Today, the crypto market experienced a collective plunge:
BTC fell more than 5% in a single day, ETH and DOGE at one point dropped more than 8%, triggering a series of liquidations in a short time, with about 220,000 people across the network being liquidated, evaporating approximately 7 billion yuan.
This drop is not a 'negative trigger' of a single coin, but rather a stampede triggered by emotion + leverage + macro environment.
First, leverage is too high, and the market is extremely fragile.
Previously, BTC had a prolonged period of horizontal trading at high levels, with bullish sentiment continuously building up, and a large amount of capital using high leverage to go long. When BTC broke below a key support level, long positions were concentrated and liquidated, forcing the price down, with mainstream coins like ETH and DOGE being dragged down simultaneously.
Second, risk appetite has decreased, and capital is choosing to seek safety.
In the context of rising uncertainty in global markets, the tolerance for risk assets has significantly decreased. As a highly volatile asset, the crypto market naturally bears the brunt, with concentrated selling pressure being released.
Third, technical breakdowns trigger a chain reaction.
Once BTC's key structure is broken, programmatic trading and stop-loss orders are triggered simultaneously, forming a typical negative feedback loop of 'downward → liquidation → further decline'.
A few reminders for ordinary users:
• A sharp decline itself is not scary; what is scary is being passively forced out in high leverage.
• In unclear market conditions, position > direction.
• Surviving is more important than catching the lowest point.
The market is reminding everyone in the most direct way:
In a bull market, controlling leverage is the greatest Alpha.
