$19B Vanished: Crypto Market Correction Raises Questions About Resilience

The cryptocurrency market experienced a dramatic shake-up last Friday, with nearly $19 billion in open interest wiped out within hours. This sudden drop triggered alarm bells as analysts scrambled to understand the cause. Initial fears pointed towards a cascading series of liquidations, yet more recent analysis suggests a controlled deleveraging, orchestrated by market participants themselves. 10,000 Bitcoin was liquidated, and this event has stirred questions about the crypto market’s resilience to volatility. 85% of the $19 billion decline in open interest occurred before the market started its free fall.