“Rising market prices enticed traders to take on more leverage, in the form of borrowing stablecoins, which was then used to buy more crypto,” analysts Sheena Shah and Kinji Steimetz wrote. “Falling market prices were catalyzed by a reduction in crypto liquidity caused by traders closing long crypto positions, followed by redemptions of the stablecoin received.”
Related posts
-
Nigerian Central Bank Disavows Letter Directing Banks to Sever Ties With Crypto Exchanges
The Central Bank of Nigeria (CBN) has disavowed a letter that allegedly instructed financial institutions to... -
New Security-Focused Ethereum Altcoin Goes Live on Coinbase and Other Crypto Exchanges
Top US-based crypto exchange Coinbase is listing a new security-focused Ethereum (ETH) altcoin, along with other... -
KPMG Survey Finds 75% of Canada’s Institutions Owned Crypto Assets in 2023
Please note that our privacy policy, terms of use, cookies, and do not sell my personal...