According to Sun, while previous waves of excessive liquidation saw liquidations of around $1-2 billion, this time the volume has reached tenfold. The analyst argued that the US stock market can be expected to follow suit, but the short-term market loss experienced in the altcoin market cannot be explained by “normal leverage liquidation.”
Related News: Last Night, the Prices of Two Major Altcoins Officially Dropped to $0 on Binance – An Unbelievable Event
Sun explained that the situation stemmed from a sudden and deep market vacuum caused by large market makers actively withdrawing liquidity. According to the analyst, this decline was even more severe than the crashes of March 12 and May 19.
“The deleveraging in this cycle is the most comprehensive yet. The market bubble has completely deflated, and risk leverage has fallen to zero,” Sun said, but still painted an optimistic picture for the fourth quarter of 2025.
*This is not investment advice.
Continue Reading: Chinese Analyst Reveals Yesterday’s Cryptocurrency Crash and Future Predictions: “It Wasn’t Normal”
Go to Source
Author: NixCoin
Key Highlights SOL is now live on the XRP Ledger, giving users access to Solana’s…
AI SummaryShowCboe seeks SEC approval for six 3x leveraged ETFs, including Bitcoin and Ether funds,…
Key Highlights Lido contributors urged the Ethereum community to conduct a broader review of EIP-8363…
Key Highlights Nigel Farage won the Clacton by-election with 62.8% of the vote. A parliamentary…
AI SummaryShowSEC cancels meeting to propose crypto rulemaking, citing unforeseen scheduling issue, delaying Regulation Crypto…
Key Highlights 5.59M MORPHO tokens left exchanges on August 13, marking the largest daily outflow…
This website uses cookies.
Read More