On July 25, 2025, the crypto assets market experienced a slight adjustment. Ethereum hit a low of around $3,500, while Bitcoin approached $117,000 at one point. Mainstream assets generally pulled back by 5% to 10%, with the contract market seeing over $500 million in liquidations, of which long orders accounted for $380 million.

This pullback may be aimed at clearing out overly optimistic long orders and building momentum for future increases. In a bull market, sharp declines are not uncommon, and the liquidation volume in the futures market can serve as an important reference indicator. Based on past experience, when the daily liquidation volume exceeds $1.5 billion (approximately 10 billion RMB), it usually indicates that the market may be nearing its peak. Considering the current overall valuation increase in the crypto market, this risk signal's critical point may need to be adjusted to between $1.5 billion and $2 billion.

It is worth noting that achieving a high liquidation volume in a single instance does not mean an immediate peak; on the contrary, it may trigger a stronger rebound. However, if such large-scale liquidations occur consecutively, investors need to be particularly vigilant. History shows that bull markets typically peak after 2-3 instances of liquidations exceeding 10 billion RMB.

Looking back at yesterday's data, the $500 million liquidation volume has not yet reached the warning level. Therefore, this pullback is likely just a normal adjustment in the early stages of the bull market, and the market is expected to quickly regain its upward momentum.

In a generally accepted bull market environment, the most critical task for investors is to grasp the market top. The contract liquidation volume, as an important indicator, can provide valuable references for judging the market direction. However, investors should also consider other factors comprehensively, such as market sentiment, macroeconomic environment, etc., to make more comprehensive investment decisions.

With the continuous development of the crypto assets market, investors need to constantly update and adjust their analysis methods. In this rapidly changing field, maintaining vigilance and flexibility is crucial, as only in this way can opportunities be seized and risks avoided during a bull market.