A recent wave of significant leverage liquidations has hit the crypto market. Data shows that nearly $30 billion in leveraged positions have been liquidated in the BTC and ETH futures markets alone, indicating that market participants are actively reducing their risk exposure.

From the perspective of position structure, the futures holdings of the two main cryptocurrencies are noticeably lighter, reflecting a gradual cooling of market speculation enthusiasm. Industry analysts believe that this change is actually a healthy signal — the frenzy of excessive leverage is gradually fading, and market sentiment is returning to rationality.

Looking ahead to 2026, industry experts remain optimistic about the prospects of the crypto market, believing that a steady start with low leverage and light positions will lay a more solid foundation for the industry’s bull market. It will no longer be a bubble-like rise driven by leverage, but a price movement closer to the natural rhythm of the market. From this perspective, although the current liquidation wave has caused short-term volatility, in the long run, it is actually paving the way for a more sustainable upward phase.