The "Leverage Flush" Was Necessary
Here is the first major point that most people are missing regarding the January crash. The drop wasn't a fundamental failure of crypto assets or blockchain technology. It was a mechanical "flush" of the system.
When markets get too excited, traders tend to pile on leverage. They borrow money to bet on #bitcoin $BTC going up forever because they get greedy. This makes the market heavy and incredibly fragile.
The correction we saw in January effectively wiped out billions in open interest and liquidated the "tourist" money that was just here for a quick flip.
This is actually incredibly bullish for us.
Why?
Because a market built on leverage is a house of cards waiting to collapse.
A market built on spot buying is a fortress. We just replaced weak, over leveraged hands with long term holders who have higher conviction.
The foundation has been reset. The "fear" you feel right now is actually the sound of the market getting healthier and preparing for a more sustainable move up without the dead weight of greedy traders.
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