Bitcoin (BTC) traded just above $43,000 in European morning hours Thursday, recovering some losses after a leverage flush sent it down as much as 7% on Wednesday as markets reacted to analyst reports. Matrixport’s out-of-consensus report served as a catalyst to unwind overleveraged positions leading to cascading liquidations, exacerbating the downfall. Nearly $560 million of leveraged long derivatives trading positions – bets on higher prices with borrowed money – had been wiped out through Wednesday, the highest amount in at least three months, CoinGlass data shows. CryptoQuant also attributed the decline to exceptionally high funding rates on the bitcoin futures market, adding selling pressure from bitcoin miners and high profit rates of short-term holders as contributing factors. Major tokens solana (SOL), ether (ETH) and Cardano’s ADA started to stabilize early Thursday after dropping more than 10% in 24 hours. The CoinDesk Market Index (CMI), a broad-based gauge tracking the market, slumped 6% in the same period, its steepest drop in recent weeks.
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