WHAT IS THE REASON BEHIND THIS MASSIVE CRASH? 🚨🚨
1️⃣Excessive leverage & margin liquidations :-
Traders were taking insane risks with 50x–100x leverage in futures. Even a minor drop triggered forced selling, sparking a cascade of liquidations that erased trillions in paper gains.
2️⃣Profit-taking after an epic rally :-
Gold has surged 160% and Silver nearly 380% over the past two years. Many investors decided to lock in huge gains after such a parabolic run.
3️⃣Microsoft weakness :-
MSFT fell 11% today following disappointing cloud/AI growth numbers, plus Morgan Stanley dropping it from top picks. This weighed on the Nasdaq and S&P 500.
4️⃣Metals hitting bubble levels :- Gold and Silver were extremely overbought, arguably at historic highs. The market used this as an opportunity to shake out weaker hands.
5️⃣No major trigger :-There wasn’t a specific policy change, geopolitical event, or big news driving this. The drop is mostly a natural unwind after excessive positioning.
What do you think what will be next? More dump? or will it recover?