Ah, yes, I know the amplification -- I do the amplification every day!
The rally in crypto prices this year was boosted by a large heap of debt, with traders using leverage to amplify their gains. Now, after a punishing selloff in the past two weeks, the dangers of those bets are becoming apparent.
Bitcoin’s recent crash has also pulled down the shares of crypto-treasury companies. For much of the year, these companies sold stock or borrowed money to plow the proceeds into bitcoin, ether and other cryptocurrencies.
OOPS?!
Ok, fine; I admit to kind of often maybe do this
...and this bit is a little scary:
The dollar-denominated value of outstanding loans from centralized crypto lenders and decentralized lending platforms ballooned to a record high around $74 billion at the end of September, exceeding the previous record of $69 billion set in the fourth quarter of 2021, according to research from Galaxy Digital.
Do they mean exchanges/derivatives trading or, like, Strike and Ledn...?
archive = https://archive.md/4o37d