The biggest reason for volatility in crypto markets is auto-liquidations!
Traders often use leverage to increase the potential profit of trade, hence those transactions are done on margin.
They open a margin account with an exchange or broker by signing a "margin agreement" under which the crypto in the account is pledged to the exchange or brokerage firm.
In return for the pledge, the broker loans the portion of funds to the i…
Keep reading with a 7-day free trial
Subscribe to Anton’s Substack to keep reading this post and get 7 days of free access to the full post archives.