The term "bloodbath" in the crypto market generally refers to a massive drop in prices, often triggered by large volumes of simultaneous sales. In cryptocurrency futures, when there is a simultaneous entry of sell orders with high values, this can cause a cascade of liquidations, amplifying volatility and generating abrupt drops in prices.
How does this happen?
1. Large players (whales): Large investors can carry out massive sales to manipulate the market or secure profits before an expected decline.