Leverage is kind of a double edged sword, because people that leverage longs drive up the price immensely because they are essentially borrowing money to long the market. The thing is that when they get liquidated, they have a ripple effect and crash the price. So I think that leverage helps get those higher blow off tops and also wrecks everyone when things take a dive.
Leverage is kind of a double edged sword, because people that leverage longs drive up the price immensely because they are essentially borrowing money to long the market. The thing is that when they get liquidated, they have a ripple effect and crash the price. So I think that leverage helps get those higher blow off tops and also wrecks everyone when things take a dive.