2025-12-28 02:22:36

To be honest, after so many years in the crypto space, I really dislike that noble rhetoric of the "decentralization revolution." Today, I'll be straightforward—Bitcoin is essentially a high-volatility investment asset; its ups and downs are just a triangular game involving liquidity, leverage, and human greed.

Recently, Bitcoin dropped below $81,000, and there was even a flash crash of nearly 70% in a single day (though only on a less liquid trading pair). This precisely illustrates what the market reality is.

**Insufficient Liquidity "Paper-thin Support"**

The incident on the early morning of December 26th is probably still fresh in many people's minds. On a major exchange's BTC trading pair, the price suddenly plummeted from $87,600 to $24,100 in seconds, then rebounded. Sounds like a crash? In reality, it’s just the old problem of low-liquidity trading pairs—the order book isn’t deep enough. A large sell order hits the market, and the buy side gets penetrated directly.

But it’s not just a technical glitch. The entire market liquidity itself is quite fragile right now: market makers reduce positions during holidays, Bitcoin spot ETFs are experiencing continuous net outflows (BlackRock’s IBIT alone saw over $90 million outflow in a single day), and hard assets like gold and silver are attracting significant capital (gold has risen 70% in a year, while Bitcoin has fallen 8%). Large funds are moving out of high-risk assets. Rate cuts by the Federal Reserve? They haven't been able to change this situation.

**Leverage is a Double-Edged Sword**

Indeed, some say that playing virtual currencies without leverage is pointless, and I agree. Mainstream coins fluctuate by about 10% daily, so with 10x leverage, the ups and downs become 100%. It sounds like an opportunity for quick wealth, but it quickly turns into a margin call notice.

Currently, market sentiment is fragile, and even a slight breeze can trigger chain reactions of liquidations—futures positions are high, and short positions are heavily stacked. When large swings occur, forced liquidations can instantly amplify volatility.

Ultimately, this is a game of liquidity and psychological expectations. Failed rate cut expectations, hard asset inflows, and quiet holiday trading—these factors combined mean Bitcoin and the entire crypto market need to find new support levels.

BTC0.18%

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FalseProfitProphet

· 7h ago

It's too transparent; once liquidity is withdrawn, the truth is exposed. --- Basically, it's a gambler's game, and someone has to take the final baton. --- I saw that flash crash in December; thousands of people were liquidated directly. This is the true face of the market. --- Leverage is really poison, especially now that big funds are pulling out, while retail investors are still sleepwalking. --- Hard assets and the frenzy in the gold coin circle go unchecked—what does that mean? --- Decentralization? Hah, it's just a cash machine for big players. --- Lowering interest rates can't save it; we really need to reassess the market conditions. --- From this net outflow, we can see what institutions are thinking; we're just late to realize. --- Trading is light during holidays, making it easiest to crash the market; this trick is old now. --- If the order book isn't deep enough, a large order can break through. Would you still dare to hold heavy positions in such a market?

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BTCWaveRider

· 7h ago

In simple terms, once liquidity dries up, the true nature is immediately exposed. All revolutions are nonsense. --- I see through this leveraged liquidation wave; sooner or later, debts must be repaid. --- Damn, the market crashed to 24,000. This isn't a market crash; it's just the exchange cutting the leeks. --- Hard assets attract capital, big players are fleeing, retail investors are still dreaming of getting rich overnight—it's really funny. --- Playing coins without leverage is just a waste of time; adding leverage is just a waste of money. No matter what you choose, you'll lose. --- During holidays, liquidity becomes very thin. A single large order can break through the entire order book. Is this what you call market reality? --- BlackRock is issuing IBIT, and we're still discussing decentralization. Isn't that a bit ironic? --- There are so many futures shorts stacked up; a simple rebound could trigger chain liquidations, wiping out everything. How can we still play this game? --- Psychological expectations have collapsed; everything is just paper-thin. Liquidity is the real boss.

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SadMoneyMeow

· 7h ago

Listening to your words, liquidity is indeed as thin as paper... This wave of leveraged liquidations is probably coming.

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MetaMisery

· 7h ago

Liquidity is too thin and the truth is exposed. I've seen this trick too many times. Luckily, I withdrew long ago.

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OnChainDetective

· 7h ago

nah, that 12/26 flash crash reeks of manipulation tbh. traced the wallet clustering and the order book depth patterns don't add up—suspicious activity detected fr

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