Recently, the entire cryptocurrency market has fallen into a "volatility feedback loop," and this time—of course, Bitcoin is taking the heat. The price of #BTC has recently taken a roller coaster ride: dropping from 89,000 to 87,000 within four hours, then bouncing back to 91,000. The pace is so fast that it raises doubts about whether another flash crash is imminent.

Although Bitcoin is still about 30% away from #ATH , buying liquidity is clearly not keeping up, so market sentiment is becoming increasingly tense. Worse, Bitcoin's net realized profit and loss has turned negative again, indicating that those dumping on exchanges are mainly long-term holders selling at a loss, which is essentially a hallmark of "surrender-style selling."

While Coinbase Premium is strengthening, ETF funds are still quite sparse, and risk-averse sentiment remains. In other words: the volatility is too high, and 90,000 dollars could be unstable at any moment.

Moreover, more dramatically, from mid-November to now, Bitcoin has made three lower highs on a daily level (80,000, 83,000, 88,000), each one being "tricked" by a short rebound. Leveraged players have been sent directly to the "liquidation paradise": within four hours, long positions liquidated 171 million dollars, and shorts liquidated 71 million, with total liquidations approaching 500 million over 24 hours.

This raises the question: is there a big player intentionally creating volatility to slowly wash out market leverage? After all, the open interest has been cut down by a full 30 billion from the peak of 94 billion, which certainly looks like a whale's intentional act, turning this market into a bear trap.

To summarize:

▪ BTC holders are once again selling at a loss, and sentiment is tense.

▪ Liquidations are soaring, with whales suspected of "controlling the market and washing out leverage."

The drama in the market now is even more exciting than the price movements themselves. #加密市场观察