Is $50,000 the Bottom? Bitcoin Gripped by Leverage Fears

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[Cartoon] “Is the bottom at $50,000? Bitcoin and the fear of leverage”

Bitcoin (BTC) faces the risk of a deeper correction in the coming weeks, with a strong possibility of breaking below the key $60,000 support level, according to analysis. Bobby Lee, co-founder of hardware wallet manufacturer Ballet, said in an interview with Bloomberg Television, “Recent volatility in Bitcoin has been largely driven by leveraged trading in the spot, futures, and options markets. The $60,000 level is a crucial support line, and if it breaks, a large volume of long positions could be liquidated, potentially pushing prices down to the $50,000–$55,000 range.”

He added, “Bitcoin entered a bear market after reaching a new high last October. Investors holding long positions are likely to experience short-term pain. If Bitcoin were to fall 80% from its peak to the $20,000 range, that could trigger true capitulation.”

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