Analysis: Cryptocurrency market value evaporated this week 300 billion short-term downward pressure

Cryptocurrences lost about $300 billion of their value this week after a wave of leveraged bets collapsed. The volatility hit the sector's top coins and dragged market sentiment to its weakest level since the start of the summer. Billions of dollars of bullish bets in the cryptocurrency perpetual futures market were forced into position squaring, further accelerating the current round of losses. According to data compiled by Coinglass, the cumulative liquidation of long positions (bullish positions) on various exchanges has exceeded 3 billion dollars. Some traders have warned that the true size of the current market leverage level remains opaque because most trading platforms do not disclose full liquidation data. On Friday, a report that key inflation indicators slowed last month provided some cushion for the Federal Reserve to deal with the cooling of the labor market, and overall risk sentiment improved, and bitcoin and ether prices rallied slightly. Paul Howard, senior director at market maker Wincent, said the correction was a "healthy correction". He pointed out that although bitcoin prices fell below the 100-day moving average and the total market capitalization of digital assets fell back below $4 trillion, there were no signs of panic at present. However, he also warned that short-term pressures could still lead to continued lower prices - especially as digital asset prices are more closely linked to macro market sentiment than they were at the beginning of the year.