A key risk indicator is flashing again.
Margin debt has increased sharply over the past seven months, reaching levels that have only been seen a handful of times in market history. Each previous instance of this degree of leverage was followed by weaker equity performance over the next year. Notably, similar conditions were present ahead of the 2000 and 2007 market tops.
Rising leverage does not cause an immediate downturn, but it increases fragility. When markets are highly leveraged, even small shocks can lead to outsized moves as positions unwind. This is not about predicting a crash, but about understanding risk when confidence and borrowing expand too quickly.
Periods like this reward discipline, controlled exposure, and patience far more than aggressive positioning.
ZECUSDT
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384.96
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HEMIUSDT
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0.01412
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FIOUSDT
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0.01198
+5.73%