Nomura to cut crypto risk after lower Q4 profits. The decision is a sign of short-term prudence, not a withdrawal from cryptos. Institutional investors are still adjusting their exposure to market volatility. Nomura Holdings will cut its risk exposure to the crypto market after it posted lower f

On February 2nd, news reports that last weekend, the crypto market experienced a sudden and intense sell-off. Bitcoin briefly dropped below $75,000, touching a low of $74,000 before quickly rebounding above $76,000. The short-term "V-shaped" movement exposed the risks of extreme volatility caused by insufficient market depth and high leverage resonance. Data shows that within 12 hours, forced liquidations reached as high as $510 million, with longs losing $391.6 million and shorts $118.6 million. The liquidation structure was severely unbalanced, indicating that many traders initially bet on an upward trend. When the price declined and triggered the forced liquidation mechanism, selling pressure was further amplified, leading to a stampede-like decline.