The current leverage in the crypto market is too high, which may face an inevitable risk of a major collapse

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The current leverage in the crypto market is too high, which may face an inevitable risk of a major collapse

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Tracy D'souza chaincatcher

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Aug 18, 2025 0 min read

This article is syndicated from a third-party source. Read the original on the publisher's site.

Originally published at chaincatcher

Leverage in the crypto market has reached dangerous levels, raising fears of a looming collapse. Bitcoin futures leverage recently hit a five-year high, with exposure ratios above +0.4, historically linked to severe corrections. In late August 2025, over $1 billion in Bitcoin positions were liquidated, $821 million from leveraged longs. Earlier, $1.46 billion in liquidations swept across altcoins as open interest surged from $26 billion to $44 billion, amplifying systemic risk. Such leverage cycles magnify volatility—when markets turn, forced liquidations cascade into crashes. Analysts warn the current environment is fragile, with a major downturn increasingly likely without deleveraging.

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Original article: chaincatcher

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Cryptocurrencies : 18,255

Total Market Cap : $2.30T

BTC Dominance : 56.72 %

The current leverage in the crypto market is too high, which may face an inevitable risk of a major collapse

The current leverage in the crypto market is too high, which may face an inevitable risk of a major collapse

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