🚨 Bitcoin Leverage Crisis: Expert Predicts ’Catastrophic Crash’ as Market Overheats

Bitcoin's bull run might be sitting on a ticking time bomb. With leverage hitting dangerous levels, one analyst warns of a market implosion that could wipe out gains—and then some.

The leverage trap: How greed fuels the fire

Derivatives markets show traders piling into risky positions, betting big on continued upside. But when everyone's leaning the same direction, even small corrections turn violent.

History doesn't repeat, but it rhymes

Remember 2021's 50% liquidation cascade? Today's leverage ratios make that setup look tame. Exchanges quietly tightening margin requirements tells you all you need to know.

The cynical take

Wall Street's 'risk management' departments will suddenly remember leverage exists—right after their VIP clients exit positions. Retail traders? Left holding the bag as usual.

Bottom line: When the music stops, the most leveraged players won't find chairs. The only question is whether they take the broader market down with them.

Liquidation heatmap CoinGlassLiquidation heatmap CoinGlass Major BTC Crash Could Prove Catastrophic Jacob argues that the massive liquidations reflect an overleveraged market near Bitcoin’s all-time high. To him, this setup could spell disaster for investors. Notably, he warned that a major crash is inevitable. The analyst expects the crash to be "catastrophic" for investors, especially when many traders try to sell at the same time. His reasoning is that if a 1% decline in Bitcoin’s price could wipe out over $360 million in 24 hours, a significant price crash could be more devastating. Bitcoin Slumps After Hitting ATH Notably, Bitcoin has been on a free fall since it climbed to an all-time high (ATH) of $124,457 on August 14. After dropping to $118,000 yesterday, Bitcoin continued its downward journey today and eventually dipped to the $115,000 region early today. At the current price of $115,569, Bitcoin is down 7.14% from its ATH of $124,457. For many, the ongoing crash is a necessary correction for a significant rally to follow, rather than the beginning of a major downtrend. Such corrections usually present opportunities for investors who missed the previous rally to buy at discounted prices. Last month, financial expert Robert Kiyosaki echoed this view after Bitcoin retraced from its last ATH of $123,200. However, Jacob suggests otherwise, speculating that the market faces an unavoidable major crash that could be catastrophic for investors. Potential Liquidations on Bitcoin Rebound Meanwhile, Bitcoin's subsequent price action in the next few hours could determine how much will be erased from the market. According to CoinGlass data, a drop to $114,000 would wipe out roughly $597.67 million in long positions, while a rebound to $120,000 could trigger $2.23 billion in short liquidations.

potential liquidation targets for bitcoin traders