Future of the Cryptocurrency Market: What are the Recovery Prospects After the Leverage Collapse?

On October 8, the institutional investor division of the U.S. cryptocurrency exchange Coinbase released its monthly market report. Following the massive liquidation event on October 10, the cryptocurrency market appears to have reached a short-term bottom, with positions significantly improved and reset, according to the analysis. This sell-off has structurally returned the system to healthy levels of leverage, and it is likely to follow a gradual upward trend in the coming months. The liquidation event led to a drop in altcoins and temporarily boosted the buy-side liquidity by market makers, among other factors, contributing to heightened risk in certain segments of the cryptocurrency market...