🚀What's Behind the Recent Crypto Volatility? The market just experienced an $8.7 billion liquidation event CoinDesk. The culprit? Excessive leverage. When traders use too much borrowed money, small price drops trigger automatic liquidations, creating a cascade effect that pushes prices lower and triggers even more liquidations.
Key Points: High leverage = high risk. Manage your positions carefully.Experts say this is healthy deleveraging CoinDesk—clearing out weak hands. Wall Street remains bullish long-term CoinDesk despite the turbulence. Takeaway: Volatility is normal, but overleveraging makes it worse. Stay disciplined and focus on risk management.