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Industry pro Tom Lee recently issued a warning: Don't touch leverage!
Bitcoin has recently fallen below the $100,000 mark. This is no small matter - over $19 billion in positions have been liquidated, ETF funds are flowing out, the Federal Reserve's interest rate policy is still uncertain, and the U.S. government is facing a shutdown. With multiple negative factors piling up, how can the market withstand it?
Market makers are also having a tough time. Stream Finance directly lost $93 million, and many institutions' balance sheets have been weakened, leading to a tightening of the credit environment. This scene looks a bit familiar, right? It reminds us of the deleveraging storm after the FTX collapse.
In the short term, the volatility is likely to continue for a while. That said, the progress of Ethereum's blockchain applications is relatively steady, which may drive a subsequent rebound. The narrative of ETH's super cycle? I don't think this matter is over yet.