Crypto Leverage: Uh Oh ⚠️

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What to know:

  • Apparently, everyone’s borrowing crypto to buy *more* crypto. It’s like using a credit card to pay off your other credit cards. 🙃
  • Bitcoin had a little stumble (okay, a billion-dollar stumble) and suddenly people remembered risk exists. Who knew?
  • There’s a weird dollar shortage happening in crypto land. It’s like showing up to a potluck and realizing no one brought forks.

Good Morning, Asia. Here’s what’s making news in the markets:

So, apparently, crypto folks have forgotten the lessons of 2022 and are back to levering up like it’s going out of style. Which, let’s be honest, it probably will. Last Thursday’s little dip, where a casual $1 billion went *poof* in liquidations, was just a gentle reminder that gravity still applies.

Galaxy Research says crypto-collateralized loans are up 27% to $53.1 billion. That’s… a lot. It’s like everyone’s decided to build their house of cards on a slightly larger foundation of other houses of cards. 🏗️

But, you know, analysts are calling it “healthy profit-taking.” Which is what you say when you’re desperately trying to convince everyone things aren’t about to fall apart.

Apparently, borrowing ETH is now more expensive than simply *staking* it. Which, if you don’t speak crypto, means the whole thing is a bit backwards. It’s like paying someone to hold your sandwich while you eat it. 🤔

And there’s a disconnect between what’s happening with dollars on the blockchain vs. off. Basically, people need dollars, but they’re not where everyone expects them to be. It’s a logistical nightmare. Like trying to find the remote control when you *know* it’s on the couch somewhere.

Everyone’s still optimistic because of institutional money and ETFs, which is reassuring… until it isn’t. There’s a lot of potential for things to get messy with all this borrowed money and weird dollar imbalances.

That $1 billion wipeout? Just a taste of what could happen. Consider it a polite cough before the full-blown sneeze. 🤧

Market Movers

BTC: Everyone’s holding their breath waiting for Jerome Powell to speak. Bitcoin is at $118,061.51, up 0.44%. Which means… something?

ETH: A record amount of Ether is trying to get unstaked. It’s a 15-day waiting list. Talk about buyer’s remorse. ETH is up 2.13%… for now.

Gold: Gold is down slightly. Apparently, people are afraid the Fed might *not* lower interest rates. Which is, you know, a mood. 🤷‍♀️

Elsewhere in Crypto

  • Stablecoin Boom Has Made Crypto Ramps ‘Sexier’ M&A Targets, Says VanEck VC (Decrypt) – Because nothing says “sexy” like stablecoins.
  • Why Circle and Stripe (And Many Others) Are Launching Their Own Blockchains (CoinDesk) – More blockchains! As if we didn’t have enough!
  • Gemini Hires Goldmans, Citi, Morgan Stanley and Cantor as Lead Bookrunners For its IPO (CoinDesk) – Okay, now *that’s* a party.

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2025-08-18 03:57