The recent rebound in cryptocurrencies was quick to come and just as quick to fade. Starting from early January, Bitcoin soared from a low of $87,600 to $94,700, with other coins also riding the wave higher. It looked like a promising rally, but no one expected that this upward momentum would be abruptly interrupted yesterday — Bitcoin plunged 2.6% in a single day, wiping out the gains made in the previous days.

What’s truly heartbreaking is the on-chain data. According to Cryptoquant’s monitoring, during this decline, a major exchange’s Bitcoin spot market suddenly experienced a large sell-off. In just one hour, nearly $19 million worth of market orders were dumped. This was the most intense sell-off since December 23, directly reflecting that the market is far from ready and needs more time to digest the current gains.

Many leveraged traders also took a hit during this correction. Take trader Huang Licheng as an example; he still holds $30 million in Ethereum long positions and $7.12 million in HYPE longs on Hyperliquid. These two positions still show unrealized profits on the surface, but because he failed to sell at the high point, his unrealized gains dropped from $3.16 million on January 7 to just $1.78 million now. Over the past week, it’s been a case of millions of dollars in profits just slipping away.