Matrixport: As volatility gradually subsides, market signs indicate that new long positions are likely to be rebuilt

ChainCatcher news, Matrixport released today's chart stating, "Trump threatens to impose a 100% tariff on China, triggering a historic crash in the crypto market, coinciding with a time of high market leverage and extremely optimistic sentiment. As prices fell, automatic liquidations on decentralized exchanges (DEX) began to trigger in a chain reaction. Due to insufficient liquidity and low trading volume, these liquidation orders were executed passively, further exacerbating the market sell-off. At one point, the Ethereum funding rate plummeted to -39%, marking one of the most severe corrections in recent years, nearly wiping out excessive leveraged positions in the market. Only a handful of traders benefited from this decline.

As volatility gradually subsides, market signs indicate that new long positions are expected to be rebuilt. This historically significant "surrender-style sell-off" has completely reshaped the holding pattern of the entire crypto market.