On January 22, the cryptocurrency market demonstrated its profoundly disruptive nature in recent trading sessions, as a rare "long and short squeeze" storm swept across the entire industry. EasyMarkets suggests that this phenomenon, where both long and short positions suffer massive liquidations almost simultaneously, starkly reveals the extreme fragility and fickleness of market sentiment under the current macroeconomic environment. When a singular price trend is replaced by sharp intraday reversals, traditional leverage strategies can instantly transform from profit-generating tools into loss amplifiers.
According to the latest market monitoring data, the total amount of leveraged positions liquidated across the entire network in the past 24 hours has surpassed $625 million. EasyMarkets indicates that the number of traders involved reached as high as 150,000, with the profit-and-loss ratio between longs and shorts showing an unusually balanced state: long positions lost approximately $306 million, while short positions lost about $319 million. This equilibrium does not stem from market stability but results from Bitcoin's price action, which plummeted below $88,000 only to rapidly reclaim the $90,000 level, causing investors who failed to adjust their positions promptly to suffer losses on both sides of this rapid "V-shaped" reversal.
Geopolitical maneuvering and shifts in macroeconomic policies are the core catalysts for this volatility. EasyMarkets believes that due to the market's high sensitivity to US trade policies and the President's remarks at the World Economic Forum in Davos, coupled with violent turbulence in the global bond market, safe-haven capital and speculative funds are changing hands frequently within short timeframes. EasyMarkets notes that on the Hyperliquid platform, a single Ethereum liquidation order as large as $40.22 million even occurred, which sufficiently illustrates the severe survival challenge high-leverage operations face in oscillating markets lacking a clear trend.
Such dual-sided liquidation events typically occur at inflection points where market views are severely divided. EasyMarkets argues that when sentiment shifts driven by macroeconomic news outpace the repair of technical indicators, a liquidity vacuum amplifies every rally and decline. For active traders, the current market environment is challenging not due to a lack of opportunities but because of an extremely narrow margin for error. Against this backdrop, relying solely on directional predictions without implementing strict risk hedging is highly likely to lead to being wiped out by two opposing waves of price movement.
In summary, EasyMarkets states that as Bitcoin consolidates and fluctuates around the $90,000 mark, investors should focus more on position management than merely on leverage ratios. With macroeconomic uncertainties continuing to develop, future volatility will most likely remain elevated. EasyMarkets believes that before a clear trend signal emerges, adopting a more defensive trading posture and utilizing the protective tools offered by platforms to hedge against slippage risk will be a crucial prerequisite for both survival and profitability.
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