$BTC $ETH

In the past 24 hours, $2.5 billion in liquidations occurred, long positions were massacred, and funds are urgently fleeing to safe-haven yield zones.
After BTC dropped below $63K, the crypto market experienced the most violent deleveraging since the start of this correction. Over the past 24 hours, total liquidations across exchanges reached $63k, with long liquidations accounting for $2.54B, or 94%.
ETH liquidations stood at $2.4B, while BTC liquidations were $774 million. The Fear and Greed Index (FGI) simultaneously fell to 17, entering extreme fear territory.
Meanwhile, Bitcoin spot ETFs have seen net outflows for six consecutive weeks, with total monthly outflows reaching $6.4 billion, a new historical record. Major cryptocurrencies generally experienced capital outflows, with BTC, ETH, SOL, and DOGE all showing significant net withdrawals.
You might be wondering: why didn't prices crash sharply, yet the liquidation amount is so large?
Indeed, the market still has consensus—the easing of US-Iran talks, the pricing-in of rate hike expectations, and Bitcoin bouncing back to $64K after breaking below $60K. A false breakdown below $60K, where it didn't truly break, led many long positions to believe a rebound was coming.
Additionally, over the past few days, whales' massive ETH purchases combined with spot buying on the ETH orderbook temporarily boosted the market, making it stronger than BTC. Ultimately, during the early-week correction, ETH's liquidation amount didn't disappoint, recording the largest liquidation.
Now the market is in a downtrend, but there's a false sense of stabilization around the $60K level. It's confusing whether to short on the right side or go long on the left side in anticipation.
In the smaller time frame rebound trend starting from $59K, it hasn't fully invalidated yet. Smaller cycles driving larger cycles, I still find it more reasonable to go long here. If the price effectively breaks below $61,800, I'll continue to watch for $60K.
Overall, the market is in a consolidation phase. Currently, I believe it's a bottom trap to induce short positions. Patience is needed to wait for confirmation before entering, staying in cash amid fear.