Galaxy Digital Warning: Risks of Leverage Trading in the Crypto Market are Rising

According to news from HashKey, based on the latest report from Galaxy Digital, the scale of crypto mortgage loans in the second quarter increased by 27% quarter-on-quarter, reaching $53.1 billion, setting a new high since 2022. Recently, the decline in Bitcoin (BTC) prices has led to over $1 billion in contract liquidations, exposing the market's vulnerability due to accumulated leverage. The report points out that since July, the cost of OTC lending for USDC has continued to rise, exacerbating the mismatch of dollar liquidity both on-chain and off-chain. At the same time, the tightening of liquidity in DeFi and the increase in lending concentration have brought greater pressure to the market.