10,000 people enter with 10x leverage on BTC at 3 different levels: $65k, $67.5k, and $70k. Now, imagine the price drops to $63k, so -10% from $70k. Entrants will be eliminated and thus trigger a massive sell-off in the market, which will push the price of BTC down sharply, which will then fall to $60,750 due to mass liquidation. will, which will trigger a liquidation of entrants at $67.5. k, and so on... This is called cascading liquidation. When too many people enter the market with leverage, it creates a very strong and rapid liquidation risk, which can create "flash crashes", i.e. moments of a few minutes where BTC is -20 or -25%. can lose It's the same in traditional finance, on the scale of banks/hedge funds etc, but that's another topic. Thank you for reading. Feel free to like, comment, share and subscribe, it helps a lot. You can also tip me, that's the only way I get paid. Many thanks to those who will do this.#Pakistani_Bitcoin #Pakistan #IndiaCryptoDreams #Bangladesh