Bitcoin's price crossed the $50,000 level for the first time since May.
As a result of this rally, more than 90% of the coins on the network now exceed their purchase price - which means that less than 10% of those who invested in bitcoin have suffered any losses.
Not Like Last Time, for One BIG Reason...
It's important to understand - last time Bitcoin broke $50k a big reason behind the rise was people trading with leverage (borrowed funds) which amplifies both risk and returns. It allowed people with $100 to their name to run up the market by thousands.
If you haven't traded with leverage, this may sound great - but it's a double edged sword, they take back their money and all of yours if it begins to lose even a little.
But This Rally Was Organic, Driven By Real Buying...
This recovery however is based on real buys, with the leverage markets lower than ever. Partially because of how badly it turned out for many last time, and because two huge sources of leverage trading, Binance and FTX Trading, lowered their highest leverage amount from 100X to 20X.
However - be prepared for leverage to make it's return, as more traders become confident that Bitcoin will break the next hyped up price point of $100k, some are expecting to see an increase in leveraged trades to follow if Bitcoin can stabilize above $50k.
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