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Bitcoin ‘Battle of Leverages’ Makes $20,000 Key Level to Watch

  • Leveraged bets intensified short positions, says Ballet CEO
  • CEO warns recent rout could be the start of a long bear market
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Bitcoin Will Hit $100,000 in 12 Months, Says Nexo's Trenchev

A drop in Bitcoin below $20,000 could trigger large liquidations of leveraged positions, putting more pressure on an asset that has already slumped more than 50% this year, crypto executives said. 

Investors are using leverage to short these positions and force prices down in a “battle of leverages,” according to Bobby Lee, chief executive officer and founder of crypto storage provider Ballet Global Inc. This could trigger margin calls for firms that have borrowed against the world’s largest digital token, he said.