If you pay attention, you will notice a significant improvement in the market structure compared to previous cycles. Currently, most derivative positions are collateralized with stablecoins (stablecoin-margined) instead of volatile crypto assets like BTC or ETH (coin-margined). This is an important advancement that helps mitigate systemic risk. In previous cycles, when the value of the collateralized assets (e.g., BTC, Altcoin...LUNA) dropped, it not only reduced the value of the position but also decreased the value of the collateral itself, creating a dangerous cross-liquidation cascade. Using stablecoins as collateral helps break this cycle, making the market more resilient to price shocks.
Therefore, long squeezes at this time often present more opportunities for investors looking to accumulate Crypto assets.
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