PANews reported on February 19th, according to Matrixport market dynamics observation, the liquidation situation of Bitcoin and Ethereum in this round is significantly different from that during the bull market period of 2020/2021. At that time, liquidations often triggered severe price fluctuations, but even if there was a short-term liquidation volume as high as $600 million in this round of market, the price could still stabilize at the bottom without a significant follow-up decline. This indicates that the overall leverage level of the current market is relatively low, traders are more cautious when setting stop losses, market confidence is stronger or influenced by SEC's approval of Bitcoin spot ETF.
In addition, the risk of Bitcoin returning to zero has been basically eliminated and market focus has shifted towards its downside space. However, historical data shows that downward pressure brought about by liquidations is relatively limited; a phenomenon which contrasts sharply with markets under high-leverage environments in 2020/2021.