Crypto Market Still Rides on Speculative Leverage

The idea that cryptocurrency's speculative era has come to an end is being greatly exaggerated, according to recent reports. This notion has been circulating in the market for some time, but experts argue that leverage remains a key driver of price movements.

As Bloomberg Crypto notes, the digital-asset market continues to be characterized by its Wild West nature. Muyao Shen writes that reports of crypto's animal spirits dying down have been overstated.

The article highlights how leverage has continued to play a significant role in driving prices up and down. This is particularly evident in the use of borrowed funds to amplify investment returns, which can lead to sudden price swings.