The way people participate in this market might also amplify the FUD potential and market chaos.
“Several crypto exchanges have reduced the amount of leverage available to reduce the chance of a market crash. However, Ben Caselin, head of research at AAX exchange, warns “Most crypto derivatives exchanges still offer up to 125x.” To put that in perspective, imagine making a $125,000 stock purchase with a $1000 account. Now imagine it failing.”
- Todd Moses
After all, bitcoin has come back from a massive crash before - following the winter of 2017. But, as Ann Inw pointed out, the often-overlooked details of that crash may be exactly what keeps BTC down this time around. And like many conversations these days, it comes back to The Big Short.