What if the $380 billion crypto crash wasn’t the end — but the cleanest setup for the next major rally?

Why this report matters

Crypto just endured one of its most violent unwinds in history — nearly $19 billion in liquidations wiped out over $380 billion in market value within hours. Hidden beneath the chaos, however, is a dramatic repositioning: leverage has been flushed, funding rates have collapsed, and open interest has been reset across Bitcoin, Ethereum, and Solana. Yet not all markets reacted equally — some exchanges amplified the crash, while others quietly became ground zero for new accumulation.

The data shows which traders capitulated, who’s already re-entering, and where the next asymmetric setups may be forming. Volatility remains high, but opportunities often emerge in the aftermath of forced liquidation. We explained our near-term view in the two reports published yesterday (here, here); however, below are some observations we are seeing regarding how other traders' positions have changed.

Main argument

With roughly $19 billion in perpetual futures liquidations, the cryptocurrency market has just experienced one of its most significant forced unwinding events in history. Unlike traditional finance—where margin calls often cluster around 2 p.m. and offer a warning before liquidation cascades—crypto liquidations, especially on DEXs, happen automatically and instantaneously.

Crypto Market Cap (LHS, $ trillions) vs. Trading Volumes (RHS, $ billions)

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