#年底牛还熊？ The Bull Market Before It Arrives: A Violent Liquidation of Contract Leverage

Before the bull market of 2021, 100% of long leverage was cleared through 312, meaning that on the day of 312, everyone who went long was 100% liquidated. Even most short sellers, seeing the drop was too significant, tried to bottom-fish and were also liquidated.

All that remained were the short sellers, professionals who never went long. This group eventually got swept away by the infinite rise after 312.

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The bull market of 2017 was even more pronounced. At that time, the entire cryptocurrency space was largely dominated by domestic investors. As a result, after 94, not only was there significant liquidation, but all domestic exchanges were relocated, and spot traders also liquidated all their holdings. After selling out, there was no place left to buy.

Two months after 94, Bitcoin and numerous altcoins skyrocketed, with Bitcoin directly rising to nearly $20,000.

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Summary: The harsher the cleansing, the stronger the subsequent rise. $BTC