Author: Huobi Growth Academy

summary

In the first quarter of 2026, the crypto market experienced a historic deleveraging storm. Bitcoin retreated by more than 40% from its highs, Ethereum fell even more sharply, and altcoins generally halved in value. This crash was not simply caused by cooling market sentiment or regulatory rumors; it was the result of a confluence of three tightening liquidity factors: large-scale unwinding of yen carry trades, the US Treasury’s TGA account restructuring drawing funds from the market, and a systemic increase in margin requirements in the derivatives market. These factors, combined with the crypto market’s own high leverage structure and valuation bubble, triggered a stampede-like clearing. Looking…