Leverage + Falling Prices = Sector-Level Squeeze

[tradelikepro]

DAT firms aggressively accumulated crypto in 2025 — $22.6B in Q3 alone.
But when Bitcoin fell from its highs, leveraged structures (convertible notes, PIPE deals, perpetual preferred equity) turned into pressure cookers.
Liquidity worsened as BTC order book depth dropped 33%, raising sensitivity to any selling.
Analysts warn forced liquidations may hit $4B–$6B, possibly exceeding ETF outflows.

[Nahid Hossen]

This combo always puts massive pressure on the whole market. ️

[Abdul Khan]

Leverage unwinds can flip sentiment in minutes. Wild times.

[Nahid Hossen]

may hit $4B–$6B soon️️️️️