A fierce wind has blown through the crypto market. Over $1.7 billion in futures positions were liquidated in just the past day, causing the market to experience extreme volatility. According to Coinpedia and foreign media reports, the plunge was heavily concentrated in long positions. Bitcoin and Ethereum were hit hard, while XRP even saw a massive dip of nearly 37% at one point.

This sell-off appears to have cleared out a large volume of high-leverage positions that had been accumulating for a long time. In particular, open interest in Ethereum plummeted by about $3 billion, resetting the bloated market structure. Although the short-term price shock is painful, some analysts suggest this could actually be an opportunity to build a more solid foundation as the market's froth is washed away.

What stands out to Kito is the flow of institutional investors. Even while the market has been shaky, capital inflows into Bitcoin and Ethereum spot ETFs have remained steady. It seems that short-term speculative forces are being shaken out, and a qualitative shift toward quality assets is taking place. Of course, since major variables like macroeconomic data and Nvidia's earnings announcement remain, it's best to be cautious about hasty buying. It's worth keeping a close eye on trading volume and ETF inflows to see if the market is slowly finding stability. haha

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