Crypto market sheds $140 billion in four hours

The crypto market lost $140 billion in market capitalization within four hours during a rapid selloff, underscoring how leverage amplifies volatility across digital assets. The recurring nature of these sharp drawdowns points to structural fragility in a market where borrowed positions can force cascading liquidations. Investors face heightened risk as these deleveraging episodes compress prices faster than spot demand can absorb. Watch for funding rates and open interest across major derivatives venues to gauge whether leverage is rebuilding or continuing to unwind.