Leveraged trading meant the death knell for many crypto traders in November

About a year ago, Bitcoin broke through the magical $100,000 barrier for the very first time. After that, a pro-crypto president took office in the United States for the very first time (Trump wasn’t very pro-Bitcoin during his first term), and increasingly outlandish price targets were set for the largest digital currency.

After a year of frustration and a new all-time high of $126,000, it seems that this new president has now also ushered in the Bitcoin bear market.

Leverage

Not only did we see a drop of around 35% for Bitcoin last month (from an ATH of $126,000 to a price of $82,000), but many investors were also completely knocked out of the market as more and more of them used leverage (in other words, borrowing virtual money to invest significantly more than their initial investment).

This is very profitable when the Bitcoin price rises (which is what happened from April to October), but disastrous when the price falls (which we saw last month).

Influencer Andrew Tate, for example, saw his entire crypto wallet dwindle to zero during last month’s price drop.

When Donald Trump announced in April of this year that he would impose import tariffs on virtually every country in the world, some 2 million investors lost their entire crypto investment because they had borrowed money to trade with leverage.

I think that’s the major risk of investing in such a manner.