March 28, 2024

Bitcoin chokes on margin leverage

Despite the colossal and rapid growth in Bitcoin prices, one of the world's most toxic assets,Most financial losses are not borne by bears(as most people think), but players with long positions. In recent months, bullish speculators have lost billions of dollars despite Bitcoin's rise.

As is known, at the moment when mania reachespeak, the holiday gives way to a storm, technically this is already happening with cryptocurrency and Bitcoin, the bubbles in which are not inferior in strength to the bubble in the US stock market. There are so many people who want to get rich suddenly and quickly that most players use not only their own funds, but also margin leverage.

Bitcoin chokes on margin leverage

From the graph we see that the majorityforced liquidated positions are long bull positions. Each rollback or correction of Bitcoin provokes a wave of margin calls, but there are so many people who want to “retire at 28-35” that instead of some speculators with leverage, a new crowd of others immediately comes and the quotes of crypto and Bitcoin soar up again and all this happens without the participation of bears, which were killed last year.

Output:the wave of aggressive speculators coming to the crypto market will soon end and another fall and margin calls will cause a long bear market not only in Bitcoin and crypto, but also in the US stock market.