Overnight on the weekend, Bitcoin once again experienced a rollercoaster ride. On the evening of the 18th Eastern Time, stimulated by geopolitical news, Bitcoin plummeted from $95,500 to $92,474 in just four hours, a decline of nearly 3.2%, instantly triggering over $75 million in long contract liquidations, making the scene quite intense.
Behind this flash crash, liquidity vacuum is a key factor. Weekends are traditionally the quietest trading periods, with most Wall Street traders on vacation and a severe lack of buy orders. Once sell orders hit the market, prices are easily broken through support levels. The majority of these liquidations involved long positions being forcibly closed, indicating that many bullish traders were directly wiped out.
It's not just Bitcoin that suffered. Mainstream tokens like Ethereum and Solana also collectively weakened. This reflects not just technical issues but a systemic risk reassessment of high-beta assets. Simply put, the market's risk-averse nerves have been fully activated, and investors are collectively adjusting their positions, shifting from risk assets to safer assets.
Geopolitical uncertainties, coupled with unclear regulatory prospects for the crypto market, create double pressure, which can easily trigger such rapid adjustments. Currently, the countdown to the implementation of the tariff policy on February 1 is ongoing, and market nerves will remain tense. Such volatility may repeat itself.