@nebula89hunter
Leverage liquidation cascades in cryptocurrency markets occur when highly leveraged positions are forcibly closed due to price drops, triggering a domino effect. As liquidations flood the market with sell orders, prices plummet further, amplifying volatility. This was evident in past Bitcoin crashes, like the $350 million liquidation event in April 2024. Investors can mitigate risks by using lower leverage, setting stop-loss orders to limit losses, maintaining sufficient collateral, and diversifying portfolios. Staying informed about market trends and avoiding overexposure during volatile periods also helps. Effective risk management is key to navigating these cascades.
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