Friday's crypto crash — one of the largest single-day drops in history — may appear catastrophic at first glance, but major analysts maintain it was more of a technical reset than a market collapse.
According to a new report from Kobeissi Letters, some digital assets lost up to 95% of their value within just 24 hours. The root cause is attributed to extreme leverage, a practice involving borrowing capital to amplify potential returns on investment or project financing.
"Leverage combined with sudden macroeconomic shocks, not fundamental weakness, drove this event," analysts said. They described the situation as a 'perfect storm' that struck a market already heavily skewed toward bullish positions. Data shows over $16.7 billion in long positions were liquidated, compared to only $2.5 billion in short positions — a staggering 7-to-1 ratio that accelerated the downward spiral.
Meanwhile, President Donald Trump’s announcement late Friday of a 100% tariff on Chinese imports further weakened liquidity — the ability to quickly convert cryptocurrencies into cash or other assets without affecting price — triggering intensified volatility.
The Kobeissi team concluded: "We believe this drop resulted from multiple technical factors acting in concert. This move does not reflect deteriorating fundamentals. A correction was inevitable, and we remain positive on crypto’s long-term outlook."
In just hours, a $20 billion liquidation wave swept through the market, forcing about 1.6 million leveraged traders into margin calls. Small-cap coins nearly reached zero valuation. Excluding Bitcoin and Ethereum, the Total3 Index — a measure of all other crypto assets — plummeted from $1.15 trillion to $76.6 billion before stabilizing. This drop marked the most severe decline since the FTX and Terra/LUNA collapses.
While the market endured a brutal purge, some industry voices argue this was necessary to cleanse the ecosystem. Cory Klippsten, CEO of Swan Bitcoin, told Cointelegraph: "This selloff likely served to remove weak players and over-leveraged speculators, setting the stage for more sustainable growth. These corrections often fuel the next rally."
Others caution that actual losses may exceed reported liquidations. Some traders note that forced selling and chain reactions continue to ripple through lending platforms and derivatives markets, with full impacts still unfolding.
Nevertheless, long-term holders emphasize that this plunge does not signal the end of the bull cycle. It simply reaffirms how quickly leverage and low liquidity can destabilize the crypto market in the short term.
Despite the turmoil, the underlying infrastructure and investor confidence remain intact. Blockchain analysis suggests that whale wallets have maintained accumulation patterns, indicating strong belief in future recovery.9ov比特币实时价格与加密货币新闻 - 比特之家 | 7x24小时行情与资讯
市场趋势：为何这次暴跌不同寻常？
Unlike previous crashes driven by protocol failures or fraud, this event was primarily fueled by financial mechanics — particularly the use of leverage across centralized exchanges and derivative products. The imbalance between long and short positions created a feedback loop where falling prices triggered more liquidations, which in turn drove prices lower.
技术因素如何放大风险？
High leverage acts like a magnifying glass on price movements. When markets turn negative, even small swings can trigger massive forced sales. In this case, the absence of sufficient liquidity meant there were no buyers to absorb the flood of sell orders, causing cascading price drops.
未来展望：是洗牌还是转折点？
While short-term pain is undeniable, many experts view this as a necessary cleansing process. By removing speculative excesses and overvalued assets, the market may emerge stronger and more resilient. As one analyst put it: "What looks like a crash today might be the foundation for tomorrow's rally."
As always, investors are urged to conduct independent research and consult licensed financial advisors before making any decisions. The information provided here is for educational purposes only and does not constitute financial, investment, or trading advice.9ov比特币实时价格与加密货币新闻 - 比特之家 | 7x24小时行情与资讯
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