Bitcoin Crash Linked to Leverage, Not Broken Fundamentals

Reports from BlackRock and VanEck suggest that Bitcoin's 50% crash was caused by extreme leverage and capital rotation, rather than broken fundamentals.

BlackRock highlights $90 billion in futures open interest with high leverage as a key pressure point, while VanEck notes 8 of 12 capitulation signals are active, indicating the sell-off may be nearing its final phase.

Both firms consider the current correction to be cyclical and expect a shallower bottom than past crashes. However, they do not predict a quick rebound, and instead believe that the next months will test if Wall Street's involvement can soften Bitcoin's downturn.