SOL struggles to extend its gains as declining activity, falling leverage demand and competition from newly launched spot altcoin ETFs challenge Solana’s price rebound.
Leverage News
Leverage is an investment strategy that involves using borrowed capital or a combination of different derivative instruments to increase the potential rate of return on investments made in various markets and across many asset classes. Although borrowing funds used by companies to finance assets is also known as leverage, the term is normally used to denote an investment style that depends on appropriating investor funds to short-term positions with the aim of generating exponential profits over a brief timeframe.
Using leverage can expose investors to unlimited risk, especially if the capital is used to sell derivative instruments, such as options and futures, in the event that the price moves opposite to the desired direction. Generally practiced by institutional investors, large banks and hedge funds, there is a growing trend of retail investors using leverage to access expensive trading opportunities in the hope of profiting from an event or a price trend reversal in a particular asset.
In the cryptocurrency space, most centralized exchanges allow leverage trading to enable users to trade larger amounts. Leveraged trading can increase potential gains, but it also carries a high risk, particularly in the volatile cryptocurrency market. For example, the exchange may be forced to sell users’ assets and liquidate holdings if the market goes in the opposite direction of their position.
- Altcoin Watch2055
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The SEC approved a 2x leveraged ETF tied to SUI as regulators warn that excessive leverage continues to amplify volatility across crypto markets.
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Ether price surged to $3,000 on Tuesday, but lagged behind the US stock market rally as muted demand for ETH derivatives and growth in competing blockchains kept traders skeptical.
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ETH investor sentiment wavers as onchain activity and bearish derivatives positioning leave whales unconvinced, reducing the odds for a rally to $4,000.
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Ether traders ramped up leverage as futures dominance surged and key technical levels came into play. Will ETH bulls succeed in catalyzing a rally to $3,400?
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SOL price rallied to $140, but weak derivatives market metrics and stagnant network fees showed limited investor confidence. Is a retest of the $160 possible?
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ETH price fell to levels not seen since July, but compelling futures data could shed light on a silver lining. Is Ether headed toward $3,200?
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The weakness in the AI sector contributed to the crypto market downturn, as spot BTC ETF outflows and isolated selling sent Bitcoin price to a six-month low.
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Bitcoin’s recent weakness mirrors broader economic uncertainty, as unreliable economic data and shifting expectations on US growth and policy cloud investor confidence.
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The high-leverage trader said he was “all-in,” betting on a Bitcoin decline below $92,000 despite the optimism surrounding the end of the 40-day US government shutdown.
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Interim CFTC chief Caroline Pham confirmed plans to greenlight leveraged spot crypto trading in the US as early as next month following talks with regulated exchanges.
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HyperUnit, the whale that made $200 million from the US-China tariff crash last month, is now betting on a rebound in Bitcoin and Ether, opening $55 million in long positions.
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Hyperliquid, Aster and Lighter have pushed decentralized perps trading volume to over $1 trillion in October, beating August’s tally with a week to spare.
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Crypto analysts predicted Bitcoin could fall to its 50-week moving average before reversing, citing leverage concerns and historical support patterns.
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DeepSeek was the only AI model to generate a positive return on Wednesday, despite having the smallest development budget among its peers.
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