Matrixport: The massive liquidation in the short term has not caused significant volatility, indicating that the overall leverage level in the market is low

ChainCatcher news, Matrixport released today's chart stating that compared to the previous bull market, liquidations at that time often triggered severe volatility. In this round of the market, even with a short-term liquidation amount of up to $600 million in Bitcoin and Ethereum, prices have still managed to stabilize at the bottom without significant declines. This indicates that the overall leverage level in the market is low, traders are more cautious when setting stop-losses, and confidence is stronger, possibly influenced by the SEC's approval of Bitcoin spot ETFs.

Now, the risk of Bitcoin going to zero has been largely eliminated, and the market's focus has shifted to its downside potential. However, historical data shows that the downward pressure from liquidations is relatively limited. This contrasts sharply with the high leverage environment during the 2020/2021 bull market.