Recent analysis from COINOTAG, dated February 19th, highlights observations made by Matrixport regarding the **current cryptocurrency market** dynamics. Historically, during previous bull runs, excessive **liquidations** frequently led to abrupt price fluctuations; however, the present cycle tells a different story. Despite witnessing a striking **$6 billion in liquidations** affecting Bitcoin and Ethereum in a concentrated timeframe, the market demonstrated resilience, managing to stabilize at lower levels without experiencing significant declines. This behavior suggests that the overall leverage within the market is **notably low**, suggesting a cautious trading approach with traders meticulously placing their **stop-loss orders**. Factors such as the potential approval of a **Bitcoin spot ETF** by the SEC may have bolstered trader confidence. Today’s landscape indicates that the fear of Bitcoin plummeting to zero has considerably diminished, fostering a shift in market focus towards understanding its potential downside. Importantly, historical evidence suggests that the impact of liquidations on prices remains comparatively restrained, especially when contrasted with the high-leverage phase observed in the **2020/2021 bull market**.
Source: https://en.coinotag.com/breakingnews/bitcoin-market-stability-in-the-face-of-6-billion-liquidations-a-shift-from-high-leverage-volatility/