TechFlow reports, on July 16, according to CryptoQuant analyst Crazzyblockk, the current BTC exchange leverage ratio has breached the historical top 5% extreme range, far exceeding the historical average, while at the same time exchange stablecoin reserves continue to shrink, spot liquidity is severely insufficient, and borrowed margin size has significantly surpassed the spot buy orders that can be absorbed. The analyst pointed out that this bullish trend is built on borrowed margin lacking underlying support, the market structure is extremely fragile, and deleveraging events are not a matter of probability, but a mathematical inevitability of regression to the mean. Once market makers trigger liquidation, prices will face severe downward impact. It is suggested that investors reduce leverage exposure, protect spot positions, and consider opening new positions after leverage indicators fall back.
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