Bitcoin's $1 Trillion Shakeout Is 'Leverage': Devere CEO
Bitcoin has erased more than a trillion dollars' worth of crypto market value in six weeks, forcing the market to confront how much borrowed money had been propping up positions across the sector.
This is the analysis of Nigel Green, CEO of one of the world's largest independent financial advisory organizations as global stocks and risk-on assets extend losses.
In this context, 'leverage' means some traders had been using borrowed funds to boost the size of their positions.
When prices fell, those positions were automatically closed by exchanges, creating forced selling that intensified the decline. It is a mechanical process that can make routine pullbacks look more dramatic than the fundamentals justify.
Nigel Green, CEO of deVere Group, says this leverage reset is the core driver of the current crypto downturn.
He adds that the sell-off is unfolding against a backdrop of broader unease. Investors are focused on softer labor-market signals, the sustainability of AI and tech valuations, tariff effects under President Donald Trump's administration, and the direction of US interest rates.
These factors have created a cautious mood across speculative assets.
deVere's analysis indicates that the market is being driven more by sentiment than by long-term fundamentals.
Pricing already reflects a substantial degree of caution. As clarity emerges on labor-market trends and policy signals, confidence can be expected to rebuild quickly.
Nigel Green concludes:
Research Bitcoin stocks at Investorideas free stock directory /Bitcoin-Cryptocurrency/Stocks_ListAbout Investorideas - Big Investing Ideas
Investorideas is the go-to platform for big investing ideas. From breaking stock news to top-rated investing podcasts, we cover it all. Our original branded content includes podcasts such as Exploring Mining, Cleantech, Crypto Corner, Cannabis News, and the AI Eye. We also create free investor stock directories for sectors including mining, crypto, renewable energy, gaming, biotech, tech, sports and more. Public companies within the sectors we cover can use our news publishing and content creation services to help tell their story to interested investors. Paid content is always disclosed
Learn more about our news, PR and social media, podcast services at Investorideas for crypto stocks
/Investors/Services
Learn more about digital advertising and guest posts for cryptocurrency
/Advertise/
Follow us on X @investorideas
Follow us on Facebook
Follow us on YouTube
Sign up for free stock news alerts at Investorideas
/Resources/Newsletter
Contact Investorideas
800-665-0411
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.

Comments
No comment