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Futures Market Reset

Definition

A Futures Market Reset refers to a significant adjustment or recalibration within cryptocurrency futures markets, often triggered by extreme price movements, liquidations, or changes in market structure. This event can involve a rapid unwinding of leveraged positions, leading to cascading liquidations and a return to more balanced funding rates and open interest levels. It effectively clears out excess speculation, setting a new baseline for market activity. Such resets can precede periods of more stable price discovery.