The total market capitalization of Crypto Assets has surpassed the $40 trillion mark for the first time, setting a new historical record. Behind this milestone is the continuous influx of institutional funds and subtle changes in the regulatory environment.

After recently reaching a high of $120,000, Bitcoin has slightly retraced and is fluctuating around $117,500. This brief pullback triggered a chain reaction in the market—over 176,000 traders faced liquidation, with total losses exceeding $500 million.

The market is beginning to show signs of cooling. Traders are starting to take profits, leveraged positions are being closed, and risk appetite has noticeably weakened. Liquidity is like a double-edged sword, boosting the upward trend in a bull market, but evaporating quickly during a correction, exacerbating price volatility.

Glassnode has issued a warning: the market "bubble" is accumulating. High leverage "tends to amplify both upward and downward volatility," making the market "vulnerable." In such an environment, a sharp fluctuation could trigger large-scale liquidations.