A market oversaturated with leverage in Bitcoin can lead to significant crashes, where selling pressure triggers margin calls, exacerbating further price declines.
"This could suggest the market is Currently over saturated with leverage and When that happens during a soff We're very likely to see a Crash exactly like this Just Imagine one person Selling a large amount of Bitcoin causing The Price To quickly Fall but that Drop causes These traders to be Margin called and their position is Sold away to Cover their Loss however that Selling Pressure causes more Margin Calls Which causes more Margin Calls And More Margin Calls And All Of a sudden The Price crashes further"