A Reality Check on Crypto & Leverage
The crypto market is going through a rough patch. In November 2025, Bitcoin, Ethereum, Solana — along with many altcoins — posted steep losses, as the entire crypto market lost more than $1 trillion of value in just a few weeks.
Why? Several factors collided:
Slowing demand from big investors and institutions — some companies are even liquidating large crypto holdings.
A wave of forced liquidations and margin‑calls: the crash triggered cascading sell orders, especially hurting those using leverage.
Macro and macro‑financial stress: changing expectations around interest‑rates, global economic uncertainty and weaker risk sentiment pushed many investors away from volatile assets.
leverage is dangerous in this environment. Using margin or leverage right now means riding a roller‑coaster: gains might come, but the risk of heavy losses is real.
If you hold crypto or plan to trade: treat leverage like a double‑edged sword. In such a volatile market, a cautious, long‑term mindset often beats chasing big, fast gains.
