Recently, I've seen a lot of people shouting, "Bitcoin has fallen to 80,000, I'm going to buy the dip with 10x leverage, this time I'm definitely going to make a fortune." To be honest, I'm worried for these people.

What is the most scarce thing in the crypto market in 2025? It's not the bullish news, but the liquidity of real money. The Bank of Japan's largest interest rate hike in 30 years has directly siphoned money from the market to traditional finance. Who still dares to leverage to buy the dip now? It's no different from dancing the tango on the edge of a cliff.

I know a fan who added 8x leverage to buy the dip at 82,000, and as a result, a small spike caused a direct liquidation, losing over 200,000. Later, he came to me crying for a review, saying he wished he had listened to my advice to control his position. I've seen this kind of thing too many times.

Let's first talk about what a "liquidity trap" means. Simply put, it refers to a situation where there is less money in the market, and the buy and sell orders cannot withstand pressure at all. As long as there is a slightly larger transaction, the coin price begins to fluctuate wildly. This phenomenon was particularly evident in 2025—on one hand, global central bank policy adjustments led funds to flee to traditional finance; on the other hand, major institutions were cashing out to lock in profits by the end of the year, causing the trading volume in the crypto market to drop sharply.

I looked at the on-chain data, and the depth of buy and sell orders for Bitcoin is only 30% of last year's level. What does this mean? The amount of funds that could push the coin price up by 1% before can now make it rise by 5%. The opposite is also true. Leveraged players are being liquidated in no time.

So my advice is straightforward: in 2025, stay away from high leverage. Beginners should give up on leveraged trading entirely and not listen to those who say "small leverage is fine, it can amplify profits." It can indeed amplify profits, but at the same time, it is also amplifying risks. When the market fluctuates, liquidation can happen in an instant. Even experienced traders need to be cautious; no amount of experience can withstand a market with insufficient liquidity.