The recent market conditions have indeed been quite tough. Within 24 hours, $441 million in positions were liquidated, and over 128,000 traders were wiped out, with 65% of them being long positions. It sounds quite brutal, but from another perspective, this may not all be a bad thing.

After Bitcoin surged to $95,000 and then retraced to $92,000, the high-leverage longs were flushed out. Following that, the funding rates also declined. This kind of liquidation wave may seem fierce, but it often signals market bottoming — after short-term speculators with floating profits are washed out, those who remain are truly committed to holding long-term.

On-chain data shows that the number of addresses holding long positions is increasing. These holders are clearly characterized: short-term volatility cannot shake them, and they won't panic sell just because of a little price fluctuation. So don’t be scared by liquidation numbers; it’s better to see them as preparations for the next rally.

Speaking of which, if you’re also trading with high leverage, this market movement is a good reminder. The volatility in the crypto market far exceeds that of traditional financial markets, and this must always be kept in mind. Therefore, risk management is not optional; it must come first.