Ever wonder why some "breakouts" fail instantly while others fly? It often comes down to Margin Debt vs. Real Spot Demand.
Current data shows U.S. margin debt has hit a staggering $1.2 trillion. In crypto, when a move is driven by borrowed money (leverage) rather than "spot" buying (owning the actual coin), the foundation is shaky. We call this "hollow liquidity." When price drops slightly, it triggers a chain reaction of forced liquidations—the "long squeeze." High leverage markets are efficient at one thing: punishing the impatient.
Lesson: To gauge the strength of a pump, always check the Open Interest (OI) alongside volume. If price goes up but OI skyrockets, it's often a leveraged trap. True sustainable moves happen when spot volume leads the way, showing that people are actually "stacking" rather than just "gambling."
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