Cryptocurrency Market Experiences Significant Correction Driven by Internal Structure

The cryptocurrency market has experienced a significant correction in recent days, with over $90 billion erased from the combined crypto market cap. According to an analysis by XWIN Research Japan, the decline was driven primarily by internal market structure, specifically leverage positioning and profit realization from holders who had returned to profitability.

On May 4, Bitcoin saw a significant level of profit-taking, with 14,600 BTC sold in a single day - the highest level since December 2025. This selling pressure was amplified by the combination of long liquidations and derivatives positions unwinding alongside spot selling.

The analysis suggests that large holder deposits remain relatively muted, indicating that participants with significant coins and strategic patience have not yet begun aggressive distribution. This distinction separates a leverage-driven correction from a structural top.