US Crypto Traders Increased Risk Monitoring
An analysis of 880,000 trading setups shows that U.S. retail crypto derivatives traders checked their liquidation risk about twice as often as the global average in 2025. This heightened monitoring occurred during a period of significant market volatility. The data suggests a more risk-aware approach among U.S.-based traders compared to their international counterparts.
- The year 2025 was marked by extreme price swings, with Bitcoin hitting an all-time high of over $126,000 in October before a massive crash that triggered over $19 billion in liquidations, one of the largest such events in crypto history. - A significant market drawdown in early April 2025 was attributed to macroeconomic shocks, specifically the announcement of new U.S. tariffs on Chinese goods, which reinforced the correlation between crypto and other risk assets. - A major security incident in February 2025, the theft of approximately $1.4 billion from the Bybit exchange, heightened traders' awareness of operational and counterparty risks associated with centralized platforms. - The U.S. regulatory landscape shifted significantly with the signing of the GENIUS Act on July 18, 2025, which established the first federal regulatory framework for payment stablecoins. - In December 2025, the Commodity Futures Trading Commission (CFTC) launched a Digital Assets Pilot Program, permitting futures commission merchants to accept bitcoin, ether, and certain stablecoins as collateral for derivatives trades. - Behavioral studies indicate that during periods of high volatility, retail traders are more prone to emotional decision-making and panic selling, while institutional investors often use these moments to build exposure. - The 24/7 nature of crypto markets contributes to trader anxiety; one study found crypto traders check prices an average of 14.5 times per day, with nearly one-third exhibiting compulsive monitoring behaviors. - While regulatory enforcement was seen as receding, private litigation became a more central mechanism for accountability in 2025, with a rise in class-action lawsuits against crypto projects alleging misrepresentation and unregistered securities offerings.
