Crypto market leverage is through the roof:
Total crypto loans jumped +35% in Q3 2025, to a record $73.6 billion.
This surpasses the previous record of $69.4 billion set in Q4 2021.
Crypto lending has nearly TRIPLED since Q1 2024, when the sector began to recover following the approval of US spot Bitcoin ETFs.
As a result, we are seeing violent downswings across the board in crypto as liquidations accelerate.
Leverage is proliferating volatility.
The higher the leverage climbs, the more you’re relying on strangers to behave rationally.
Crypto isn’t just volatile, it’s social volatility weaponized as financial product.
Everyone thinks they’ll be nimble enough to dodge the avalanche. Statistically, most are the snow.
If your portfolio can’t survive a 50% drawdown, someone else will own it sooner than you think.
Nov 8, 2025 · 12:32 PM UTC