Strategic Risk Management and Contrarian Entry Points
The crypto market in 2025 has become a battleground for macroeconomic forces and speculative fervor. As inflationary pressures, particularly from the U.S. core PCE index hitting 2.9% year-over-year [3], collide with leveraged trading strategies, Bitcoin and Ethereum have experienced extreme volatility. In August 2025 alone, Bitcoin fell below $109,000, triggering over $480 million in long position liquidations, while Ethereum’s 13% drop from its $4,946 peak wiped out $343 million in leveraged positions [2][4]. These events underscore the need for disciplined risk management and a contrarian mindset to navigate the evolving landscape.
The Inflation-Driven Volatility Cycle
The recent selloffs were catalyzed by the Federal…
