@joshuawashington

The July 2nd crypto market crash and massive long liquidations reinforce investor risk aversion significantly. Over $3 billion in long positions wiped out creates a vicious cycle: margin calls force selling, depressing prices further, while traders reduce leverage (futures open interest drops 30–40%). This experience ingrains caution—investors may avoid high-leverage trades, prefer stablecoins during volatility, and demand higher risk premiums for altcoins. Surveys show 55% of traders became more risk-averse post-crash, with 40% reducing crypto allocations. This sentiment could persist for 1–3 months until new positive catalysts emerge, as seen in post-2022 crash risk aversion cycles.

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