On Christmas night, Bitcoin experienced a thrilling rollercoaster—plunging from $87,600 to $24,100, a drop of up to 70%. Many leveraged traders were liquidated instantly, but the turning point came just as quickly: within seconds, the price rebounded back near $87,000. This "rollercoaster" market left the entire industry stunned.

So what exactly happened? Don't be scared by the cliff-like drop on the candlestick chart. A closer look at the data reveals that this extreme volatility only occurred in specific stablecoin trading pairs, while prices on other mainstream trading channels remained largely unaffected. The real reason is quite straightforward: severe liquidity shortages during the Christmas holiday. Traders were on vacation, market makers reduced their positions, and the depth in the trading pools evaporated instantly, allowing larger sell orders to cause massive waves.

Clues can be seen from the liquidation data. That day, the total liquidation volume across the entire network reached $136 million, with 78,100 traders being wiped out. But there's a key detail—spot investors' positions remained almost unchanged. What does this indicate? It's not that the market was truly panicking; rather, leveraged funds were being liquidated in a liquidity black hole. This fluctuation during the market structure transition is better understood as normal noise in a high-volatility era rather than a trend reversal signal.