OKX Star Addresses Concerns Over Bitcoin Market Shock

OKX Star addressed market turbulence following Bitcoin’s decline, emphasizing structural concerns amplified by leverage after a tweet by Binance’s Zhao Changpeng.

The incident highlights Bitcoin’s vulnerability to leverage cycles and market volatility, sparking debates about exchange practices and the potential need for more robust market stabilization measures.

OKX Responds to Bitcoin Drop and Investment Rumors

In a recent statement, OKX Star explained that Bitcoin’s decline began 30 minutes before its decoupling from the dollar. Clarifying that the event triggered a market shock, he emphasized that while structural leverage amplified the sell-off, it wasn’t inevitable.

The Bitcoin decline’s causation was linked to structural leverage, according to OKX Star. By outlining these factors, he shifted focus from the “1011 flash crash” and reiterated that Dragonfly never invested in OKX, addressing misinformation.

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Star Xu, Founder, OKX, stated: “he does not like debates because you can never wake up a person pretending to be asleep, but clarifying the facts is crucial: Bitcoin began to decline about 30 minutes before decoupling from the dollar. This confirms the previous point: the initial move caused a market shock. Without the dollar index leverage cycle, the market would likely have stabilized at that time. The chain sell-off was not inevitable; as previously mentioned, they were amplified by structural leverage. Dragonfly has never invested in OKX, whether through small or large investments. There will be no more time spent discussing topics related to the ‘1011 flash crash’; the facts are clear, and there is no desire for lengthy debates.”

Bitcoin’s Structural Leverage: Historical Patterns and Risks

Did you know? The “1011 flash crash” echoed historical patterns where structural leverage amplified previous market shocks, indicating recurring vulnerabilities in cryptocurrency trading frameworks.

Bitcoin (BTC) currently trades at $77,367.53, with a market cap of $1.55 trillion, according to CoinMarketCap. The past 90 days reflect a notable decline, down 27.54%. Despite the downturn, Bitcoin maintains a dominance of 59.63% in the crypto market.

Insights from the Coincu research team suggest that Bitcoin’s price fluctuation may prompt further investor caution. Historical trends indicate potential future volatility, with emphasis on how structural factors like leverage could shape market behaviors.