How Does Borrowing on Nexo Affect Market Behavior?

[madmax]

When users borrow against their crypto rather than selling, it reduces immediate sell pressure in the market. For example, over 53% of Nexo’s collateral is Bitcoin, meaning many holders are leveraging their BTC without liquidating it. This can stabilize prices but adds hidden leverage that could amplify volatility during market swings.

[Abdul Khan]

Borrowing trends often reveal real investor confidence beneath price action.

[Nahid Hossen]

Nexo borrowing spikes usually signal upcoming market volatility.