Bitcoin's recent $1 trillion downturn is primarily due to the aggressive unwinding of leveraged positions, rather than a deterioration in its long-term fundamentals. Devere Group CEO Nigel Green highlighted that the liquidations of borrowed bets have intensified short-term volatility. Despite this, Green maintains that Bitcoin's long-term investment potential remains strong, with structural momentum likely to resume once leverage is cleared from the market. While macroeconomic factors such as labor markets, AI developments, tariffs, and Federal Reserve policies are affecting sentiment, they are not expected to alter Bitcoin's overall trajectory. Analysts believe that such deleveraging phases can ultimately strengthen the market's foundation for future growth.
Bitcoin's $1 Trillion Decline Linked to Leverage Unwinding
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