Tuesday was wild for Bitcoin — first it dropped to a 14-month low, then sharply reversed upward. Such monthly fluctuations are not often seen. The movement was so abrupt that there were mass liquidations of positions totaling about $740 million.

This is a classic scenario for a volatile market — when everyone thinks the bottom is found, then suddenly boom, and everything shoots up. Traders who were in short positions took significant losses. Days like these remind us why caution is needed with leverage in crypto.