Bitcoin Crash Could Trigger Stock Market Decline In 2025, Warns Expert: ‘I’m Very Worried That People Overextended Themselves’
Amid growing concerns over cryptocurrency volatility, Thomas Peterffy, chairman of Interactive Brokers, has highlighted the potential for a Bitcoin (CRYPTO: BTC) crash to significantly impact the stock market in 2025. During an interview with Bloomberg, Peterffy emphasized the risks associated with high leverage levels in the financial system.
What Happened: Peterffy noted that margin balances have been climbing rapidly, with bitcoin being a primary area of margin-based risk-taking due to low fees on bitcoin futures offered by the CME. He warned that a sudden drop in bitcoin’s value could compel investors to liquidate assets to meet margin calls, potentially leading to bankruptcies and market instability.
“I am very worried that people overextended themselves,” Peterffy said.
In October, FINRA margin debt …
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