Attention Traders ⚠️ ‼️ Crypto market isn't doing well for few days, here is why!
Many investors use leverage, essentially borrowing money, to amplify their cryptocurrency positions. This magnifies potential gains but also increases potential losses.
🎁Didn't get PEPE yet, Click here to Get Some free PEPE! 🎁
or Claim red Packet " BP2S7I85DW"
With the price drop triggered by the jobs data, some leveraged positions became underwater (meaning their value fell below the borrowed amount).
The domino effect kicks in:
To avoid further losses, some investors are forced to sell their crypto holdings to meet margin calls (requests to repay borrowed funds). This further pushes prices down.
As prices continue to fall, more leveraged positions get liquidated, creating a self-reinforcing downward spiral.
#Bitcoinarena #TopCoinsJune2024 #altcoins #ETHETFsApproved #BTC