Crypto Liquidation. Photo by BeInCrypto The crypto market endured another $1 billion in liquidations over 24 hours, impacting over 190,000 traders. Billion-dollar liquidation events have become a regular trend in late 2025. The rise in frequent, massive liquidations reflects a significant shift in market dynamics, raising concerns about whether volatility and leveraged trading losses are permanent features of the crypto space. Crypto Liquidations Exceed $1 Billion According to the latest data from Coing ...

Core Insights - Brett Harrison, former president of FTX US, is launching a new perpetual futures exchange named Architect, which will not include crypto markets [1][3] - Harrison criticizes leveraged trading on volatile crypto assets as "irresponsible" and highlights concerns about excessive leverage in the crypto market following a significant market crash [2][5] Company Overview - Architect will offer perpetual futures on traditional stocks, foreign exchange markets, and rare metals, while allowing the use of stablecoins as collateral [3] - The exchange will initially be available to institutional investors, with plans to open to retail investors in the near future [3] Industry Context - Perpetual futures are derivative contracts with no expiration, allowing traders to leverage their positions on asset price movements [3][4] - High leverage ratios, such as 100 or 1000 times the initial capital, on volatile markets can lead to significant risks, including account liquidation [5][6]

Core Insights - Bitcoin dropped below $106,000, resulting in nearly $1.2 billion in liquidated crypto positions over the past 24 hours, primarily affecting long positions [1][2] - Approximately 79% of total liquidations were long trades, impacting over 307,000 accounts, with the largest single liquidation being a $20.4 million ETH-USD long on Hyperliquid [2] - Bitcoin losses accounted for roughly $344 million, followed by Ether at $201 million and Solana at $97 million, with other high-beta tokens also experiencing significant losses [3] Market Activity - Hyperliquid led the exchanges with $391 million in activity, followed by Bybit at $300 million, Binance at $259 million, and OKX at $99 million, indicating a blend of on-chain and traditional trading platforms during market resets [4] - Liquidations occur when traders using borrowed funds cannot meet margin requirements, leading to forced closures that can trigger cascading sell-offs, known as "liquidation loops" [5] Market Context - Bitcoin's decline began late Thursday as it fell below the $107,000 level, causing forced closures in derivatives markets amid a tense macroeconomic backdrop, including renewed U.S.-China tensions and fluctuations in currency and commodity prices [6]

Group 1 - The cryptocurrency sector experienced a significant flash crash on October 10, triggered by President Trump's threat to increase tariffs on China, leading to a panic that wiped hundreds of billions of dollars off the market cap [1][4] - Bitcoin dropped over 12% from its previous week's peak, while Ethereum saw even larger declines, and meme coins like Dogecoin briefly fell by about 50% [5][6] - The crash was exacerbated by excessive financial leverage in the market, with approximately $19 billion in forced liquidations of leveraged positions reported, marking the largest liquidation event on record [7][8] Group 2 - The initial price shock from the tariff announcement led to a cascade of liquidations as many leveraged positions were simultaneously affected, highlighting vulnerabilities in the financial plumbing of the cryptocurrency market [2][6] - Non-Bitcoin and non-Ethereum assets experienced a 33% drop on average, with some tokens losing up to 99.9% of their value in a very short time frame [6][7]

Market Trends - The current market shows a rebound across the board, with volatility increasing over the past month [1] - The S&P 500 has rebounded approximately 2% after significant one-day drops, marking the best year for the "buy the dip" strategy since 2019 and the second best since the 1980s [2] Retail Investor Behavior - Retail investors are actively participating in the market, with many buying the dip, indicating a lack of nervousness among them [2][3] - A notable increase in market participation is observed among younger investors, with about one-third of 25-year-olds currently invested, up from 6% in 2015 [4] Income Level Participation - Investors from various income levels, particularly those earning between $30,000 and $80,000, are increasingly entering the market, contributing to the current bull market [6] Leverage and Volatility - The use of leveraged trading, particularly in crypto markets, is prevalent, with some traders utilizing up to 100x leverage, which can lead to significant gains or losses [9][11] - The volatility in the stock market may be exacerbated by leveraged trades, as traders often rebalance positions around market close, contributing to extreme price movements [12] Global Market Dynamics - The trading activity is not limited to the U.S., with significant participation from international investors, particularly in leveraged crypto trades, which account for a substantial portion of Bitcoin volumes [13]

Group 1 - GraniteShares is planning to launch 3X Leveraged ETFs based on XRP, Solana, Ethereum, and Bitcoin, offering both short and long positions [1][2] - The current crypto ETF market is experiencing a bullish trend with significant profits and new token acquisitions, although regulatory delays are affecting the rollout of altcoin ETFs [2][4] - Most competitors have only proposed 2X return products, making GraniteShares' 3X offerings potentially advantageous in a riskier niche [3][4] Group 2 - XRP has been a popular choice for leveraged ETFs due to its broad appeal, with previous 2X XRP ETFs gaining popularity this summer [4][5] - In addition to XRP, GraniteShares is also proposing leveraged ETFs for Solana, Ethereum, and Bitcoin, although market conditions may not favor all these tokens for risk-seeking investors [5][6] - The proposed leveraged ETFs would allow for both short and long positions, which could be beneficial in volatile market conditions [5]

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Trading Performance - A trader turned $125 thousand into $296 million in 4 months via strategic $ETH long positions [1] - The trader achieved this by compounding gains through leveraged ETH trades across 2 accounts [1] - The trader built a 66749 $ETH position worth $303 million [1]

Core Points - Leverage trading amplifies transaction scale through a compliant margin mechanism, requiring high risk control and market judgment precision [1] Group 1: Key Points - Leverage Ratio: Typically limited by trading varieties and regulatory rules, with stock leverage generally not exceeding 1:1 and futures leverage ranging from 1:5 to 1:10, strictly adhering to platform-set limits [2] - Holding Period: Primarily short to medium-term, usually 1-5 trading days, with a maximum of 10 trading days to avoid accumulating costs and risks from long-term holdings [2] - Profit Logic: Relies on short-term trend fluctuations of underlying assets to amplify reasonable returns through leverage, without pursuing excessive profits in extreme market conditions [2] - Risk Threshold: Maximum loss per trade is strictly controlled at 10%-15% of the margin, with immediate liquidation upon reaching the stop-loss line to eliminate holding losses [2] Group 2: Operational Characteristics - Sensitivity to Volatility: Minor price changes are magnified by leverage, necessitating close monitoring of intraday charts and short-term K-lines (15/30 minutes) for trend inflection points, requiring higher responsiveness [5] - Cost Structure: Includes margin interest (calculated daily) and transaction fees, with longer holding periods resulting in higher costs, which must be factored into profit calculations [5] - Suitability of Underlying Assets: Only suitable for highly liquid and transparent standardized products (e.g., major index futures, large-cap stocks), avoiding small-cap stocks and low-volume products [5] - Fund Coordination: A reasonable ratio between own funds and leveraged funds must be maintained, with margin adequacy being a core monitoring indicator; timely replenishment or reduction of positions is required when below warning levels [5] Group 3: Practical Considerations - Selection of Products: Prioritize targets with an average daily trading volume exceeding 5 billion, ensuring sufficient liquidity for liquidation, with a bid-ask spread not exceeding 0.5% to minimize slippage losses [6] - Timing of Entry: Entry should occur when trends are clear (e.g., breaking key moving averages, sustained volume increase), and leverage should not be used in volatile markets to avoid unnecessary cost consumption [6] - Position Planning: Total leveraged trading funds should not exceed twice the own funds, with individual leveraged positions not exceeding 30% of total funds, reserving over 50% of own funds to manage volatility [6] - Familiarity with Rules: Complete mastery of the leverage calculation method, margin adjustment rules, and forced liquidation mechanisms is essential to avoid operational errors due to unclear rules [6] Group 4: Risk Control Points - Binding Stop-Loss and Take-Profit: Each trade should preset take-profit (e.g., based on 8%-12% profit after leverage) and stop-loss (e.g., 10% margin loss), triggered automatically by the system without manual intervention [7] - Strict Frequency Control: Limit leveraged trades to no more than 3 per week, with a pause of 3 trading days after two consecutive losses, followed by a review and summary of issues before resuming [7] - Margin Monitoring: Daily checks of margin adequacy before, during, and after trading to ensure it remains above 1.5 times the warning line, with proactive reduction of positions by 50% when nearing the warning line [7] - Response to Extreme Market Conditions: When the daily price change exceeds 5%, reduce positions by 50% regardless of profit or loss; in the event of systemic risks (e.g., index limit down), liquidate all positions to mitigate risk [7]

Core Viewpoint - BexBack is a rapidly growing crypto futures exchange that offers traders the opportunity to engage in leveraged trading with 100x leverage, no KYC requirements, and various bonuses to enhance trading potential [1][2][11]. Group 1: Trading Features - BexBack allows traders to open leveraged positions up to 100x on cryptocurrencies such as BTC, ETH, XRP, ADA, and SOL without KYC restrictions [2]. - The platform offers a 100% bonus on first-time deposits, effectively doubling the trading capital for new users [5]. - A welcome bonus of $50 USDT is available for users who deposit more than 0.001 BTC or 100 USDT and complete their first trade [6][7]. - BexBack charges no deposit fees and provides real-time, fee-free conversions between BTC and USDT [8]. Group 2: User Experience - The onboarding process is streamlined, allowing traders to start trading immediately without paperwork [3]. - BexBack provides global access and 24/7 multilingual support, ensuring traders can operate from anywhere in the world [9][11]. Group 3: Company Overview - BexBack is headquartered in Singapore and has offices in multiple countries, including Hong Kong, Japan, the U.S., the U.K., and Argentina [11]. - The platform holds a U.S. MSB license and has attracted over 500,000 traders from more than 200 countries, indicating rapid growth [11].