2025-12-24 23:21:56

Year-end holidays are approaching, but the crypto market is facing ongoing downward pressure. Bitcoin recently experienced a significant correction, dropping below the key support level of $86,500 in a short period, with the total liquidation volume across the network reaching $2 billion within 24 hours, affecting approximately 80,000 investors. This stands in stark contrast to the market’s previous expectations of a "year-end rally."

Historically, the cryptocurrency market tends to perform well after Christmas—since 2014, during nine Christmas cycles, the average increase has been 82%. However, the current market reality is that investors are paying the price for a lack of risk buffers.

Market sentiment has fallen to the "extreme fear" level. The Fear and Greed Index hovers around 19, while traditional safe-haven assets like gold have hit a new high of $4,400 per ounce, indicating that funds are rapidly withdrawing from risk assets. Ethereum has also not been spared, falling below the $3,000 mark and remaining under pressure around $2,920.

A more critical issue lies in liquidity. During the holiday period, trading volume shrinks, and the open interest in BTC perpetual contracts on major exchanges plummeted by about $3 billion overnight, while ETH open interest decreased by approximately $2 billion. When market depth is severely lacking, even medium-sized buy or sell orders can trigger sharp price fluctuations. This liquidity crunch is amplifying market volatility and pushing risks to the extreme.

BTC0.92%

ETH0.48%

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DefiEngineerJack

· 6h ago

well, *actually*™ the liquidity crunch isn't even the real problem here — it's the underlying assumption that historical seasonality still holds when market microstructure has fundamentally changed. 80k rekt in 24h? that's just what happens when you're not running formal verification on your risk models, ser

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DegenDreamer

· 6h ago

Another story of leverage liquidation: 80,000 people lost 2 billion. Why still believe in historical patterns? --- Oh my, liquidity dried up. This holiday market is really incredible. Gold has risen to new highs. --- What about the 82% Christmas rally? Now it's dropping quite sharply. Futures trading is just a machine for cutting leeks. --- Breaking through 3000, ETH is really missing out this time. Wait, should I buy the dip again? Or continue to fall? --- Nobody was surprised by the shrinking holiday trading volume. Still daring to use leverage... serves them right. --- The Extreme Fear Index is at 19. Why do I feel no fear at all? Instead, I find it quite exciting.

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HalfBuddhaMoney

· 6h ago

Another batch of retail investors has been liquidated, with 2 billion in margin calls. Looks like the year-end gift package has finally arrived. Historical patterns? Well, I think the pattern from 2014 will still be valuable in 2024 — just not valuable at all. The liquidity crunch during the holiday is truly outrageous. At this point, even a feather could create a pit in the market. Gold has already hit a new high. The big players have long since pulled out. What are the remaining people thinking, trying to catch the falling knife? $86,500 trying to resist? Looking back next month, this move will be quite funny. The real risk is in contract liquidation. Leveraged traders probably can't sleep well during the holidays. Perpetual contracts evaporated 3 billion overnight. It’s painful to watch — this is the price of being chosen by fate. ETH breaking below 3000 feels like it was bound to happen. I don’t understand how many people are still stubbornly holding on. Fear index is at 19. If it drops any lower, you might as well consider becoming a monk. Such extreme fear markets are most prone to black swan events. Markets with no liquidity are not markets at all — just a big casino, where everyone is giving away treasures.

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TokenDustCollector

· 6h ago

Here comes the time to cut the leeks again... 2 billion liquidation, 80,000 liquidations, is this what they call a historical pattern? Laughable. Christmas rose 82%, and now it's doing the opposite. Liquidity exhaustion is the real horror. Exchanges are like ghost towns; as soon as an order appears, the price jumps dramatically... Only the brave dare to go all-in during the holidays. Crypto was still dying when gold hit new highs... How desperate must that be? They talk about the year-end market every day, and this is all? The index is probably not even 19, I think it’s even lower. Wait, at what level does it need to fall to bottom out?

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