Just checked the charts and it's interesting how we bounced back from that brutal crash a few days ago. Bitcoin's now sitting around $78.3K with a solid 2.6% gain today, while Ethereum is up nearly 2% and most altcoins following suit. But if you remember what happened last week, that was rough.

The whole thing started when BTC dipped below $75K for the first time in ages. That single move triggered absolute chaos - roughly $237 million in long positions got liquidated in just one day. Over the entire week before the bounce, liquidations hit $2.16 billion. The leverage that had been building up for months just started unwinding all at once. Every time Bitcoin fell, it forced more selling, which pushed it lower, which triggered even more liquidations. It was this nasty feedback loop.

What made it worse was that it wasn't just one headline or event. It was selling pressure combined with this risk-off sentiment spreading everywhere. Stocks were down, people were nervous about monetary policy, and the whole market was deleveraging hard. Open interest in perpetual futures dropped 4.4% in a single day, wiping out $26 billion in exposure. That's when you know things are serious.

The reason why crypto was crashing so hard came down to leverage clearing out fast. Traders had been overleveraged for weeks, and once Bitcoin broke that key level, it all came undone. Some big holders also had unrealized losses that spooked the market. But here's the thing - it wasn't panic from one event. It was the result of weeks of stress finally snapping.

Good thing we're seeing some recovery now. Bitcoin holding above $75K seems to have stabilized things. As long as liquidations slow down and we don't see another cascade, the market should find its footing again.