CryptoQuant has identified leverage liquidations as the primary factor behind Bitcoin's price drop in late April, rather than spot selling pressure. The analytics firm noted that the decline was not due to a significant increase in spot market sales, but rather the unwinding of leveraged positions, which triggered a cascade of liquidations. This insight highlights the impact of leverage in the cryptocurrency market, where sudden price movements can lead to rapid liquidations, exacerbating volatility.
CryptoQuant Attributes Bitcoin's Late-April Decline to Leverage Liquidations
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