Crypto Market on the Edge: Meme Coins, Leverage, and Greed Signal Impending Crash

14.11.2024 1 times read 0 Comments

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3 Warning Signs Indicating Crypto Market is Going to Crash

The crypto market may be on the brink of a significant correction, according to CoinGape. Industry experts have identified three critical warning signs: meme coin frenzy, unsustainable leverage levels, and extreme greed among investors. These indicators suggest that the current parabolic rally could lead to a crash before another surge occurs. Historically, similar conditions have preceded past crashes in the cryptocurrency space.

Kris Marszalek from Crypto.com has highlighted concerns over high leveraged trading positions reaching unsustainable levels. He advises caution as Bitcoin approaches $100k and urges investors to manage their risks carefully. The recent spike in Bitcoin's price added more than US$413 billion to its market capitalization within just one week.

Big Banks Likely Gained More Than $1 Billion From Bitcoin’s Surge

A report by Forbes reveals that major U.S. banks are reaping substantial profits from Bitcoin futures amid regulatory constraints preventing them from holding actual bitcoins directly. Data from the Commodity Futures Exchange Commission (CFTC) shows these institutions took long positions worth approximately $3 billion at the Chicago Mercantile Exchange (CME), resulting in paper gains potentially exceeding $1.4 billion due to Bitcoin's rise towards nearly $90,000 recently.

This strategic move aligns with expectations for favorable policies, which might ease restrictions around digital asset ownership while supporting sectors like mining operations. This further boosts confidence among institutional players investing heavily into cryptocurrencies such as Ethereum, where they’ve increased holdings significantly during this period, reflecting bullish sentiment across markets globally.

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