After a surge in the number of BTC liquidation addresses over the past 30 days, the number has since declined, indicating signs of a recovery in market panic.

According to Murphy's monitoring, on-chain data shows signs of market sentiment recovery. Between November 13th and November 25th, the number of addresses switching from holding BTC to completely liquidating their positions surged. This period coincided with a rapid and significant drop in BTC price, reflecting market panic and pessimism. Subsequently, during the repeated bottoming-out of BTC from December 1st to December 18th, the number of liquidating addresses began to decrease. This phenomenon aligns with bullish behavior and sentiment changes in the futures market. Over the past 30 days, liquidating addresses are defined as addresses whose account balance was greater than zero 30 days ago but have now been emptied, reflecting investors' complete exit from positions under price and time pressure.