Leverage

A recent analysis from Coinbase suggests Bitcoin may experience a ‘Santa Claus rally’ this December. The rationale is based on a significant reduction in market leverage following a volatile November, creating a healthier market structure and reducing the risk of sudden liquidations.

Bitcoin’s price is rallying, fueled by aggressive buying, but analysts warn this signals an overheated market. Contrasting this with stalling economic velocity, they caution that the current momentum may be driven by leverage rather than solid fundamentals, making the rally potentially fragile.

Ethereum is up nearly 9% as the market reacts to the upcoming Fusaka upgrade. Analysts are divided, with some pointing to a critical support level at $2,800, while others warn of high leverage and potential volatility.

A new report highlights a surge in leverage trading, leading to more violent market swings. The ‘Early Black Friday’ event saw over $640 million in hourly liquidations, while Bitcoin’s dominance and spot volumes continue to grow, signaling a maturing market.

Following a significant market crash, analysts suggest Bitcoin’s market structure is improving. Mid-sized investors are accumulating BTC while risky leverage positions are being flushed out, potentially setting the stage for a healthier market.

Analyst James Check warns that Bitcoin’s price could fall to $70,000 as a wave of liquidations creates a snowball effect, amplifying the current downtrend.

Controversial internet personality Andrew Tate lost his entire crypto fortune on the Hyperliquid platform during the recent market crash, with over 630,000 euros liquidated.