Bitcoin, as the leader of cryptocurrencies, was not spared.

In the past 24 hours, about $21 million of BTC short positions and $19.86 million of long positions were liquidated. In this liquidation storm, the liquidation of short positions accounted for the majority, showing the market's uncertainty about the future trend of Bitcoin.

So, what exactly caused this large-scale liquidation?

First, the probability of the Federal Reserve keeping interest rates unchanged is as high as 90.7%, and the expectation of interest rate cuts has failed again, which is one of the main reasons for the market decline. After the expectations were dashed, traditional funds that wanted to deploy in advance chose to withdraw funds from the market to avoid risks.

The massive selling of ancient whales, the frequent transfer of Mt. Gox Bitcoin addresses, and the continued outflow of funds from US spot exchange-traded funds (ETFs) and Grayscale Bitcoin Trust (GBTC) also exacerbated the market's downward trend.

These factors worked together to hit market sentiment and weaken investor confidence.

However, some positive signals also emerged during the market decline.

Ethereum showed strong buying power. Despite the recent large price drops, a large amount of Ethereum was withdrawn from exchanges in the past day and week.

This shows that whales and big investors are still actively buying Ethereum in preparation for the upcoming Ethereum ETF. If the Ethereum ETF is successfully listed, it is expected to attract more funds into the Ethereum market, thereby driving up its price.

If Ethereum leads the mainstream market, it will undoubtedly inject new impetus into the bull market.

In the current market environment, investors holding altcoins are still in the majority. Once Ethereum remains strong, it will help the entire market enter a new stage of full prosperity. Therefore, in the face of such market opportunities, spot holders do not need to rush to change positions.

After all, in the field of cryptocurrency, steady operation is the best policy. It is wise to hold on to the assets in hand and wait for the right time. Blind operation may lead to more losses than gains.