Why is BTC crashing? > DAT reflexivity: levered Bitcoin acquirers (e.g., “buy → borrow → buy more”) become forced sellers when price drops. Leverage works both ways. > Real losses just hit the tape: Nomura ($68m) and Galaxy ($482m) reported sizable crypto losses last quarter, a reminder that meaningful balance-sheet exposure exists. This is doubly expensive as it impacts the public market’s future perception of both risk and sector growth. > Credit conditions tighten before prices do: even if spot isn’t directly sold, visible losses make lenders more trigger-happy on margin calls and haircuts, which forces sector-wide deleveraging. > Unknown counterparties amplify the effect: only public firms report. The market rationally assumes private players took similar (or worse) hits so risk premia rise. Bottom line: a classic reflexive unwind (falling prices → tighter credit → forced selling → lower prices). Will Bitcoin keep falling? Quite possibly. Will there eventually be a v shaped recovery? Almost certainly.