The cryptocurrency market faced another dramatic event as the ACT token lost around 50% of its value within hours. The plunge followed Binance's announcement of leverage & margin tier updates for multiple tokens, including ACT.
Binance Update: What Changed?
Binance Futures announced a reduction in leverage and margin tiers for several perpetual contracts, including ACTUSDT. The update effective from April 1, 2025, at 10:30 UTC, impacted the existing positions on the platform.
Reasons Behind ACT's Sharp Fall
The primary trigger behind ACT's abrupt fall was Binance's decision to reduce position sizing across multiple leverage tiers. Prior to the change, traders could hold larger leveraged positions, but the update enforced position limits, causing traders to reduce exposure or face liquidation.
1. Position Reductions on All Leverage Levels Binance's leverage limit cuts forced many traders to downsize, triggering a wave of sell-offs.
2. Large Trader Liquidation Lookonchain reported a major whale holding ACT was liquidated for $3.79 million at $0.1877, resulting in cascading effects with further declines.
3. Market Maker Wintermute's Token Sell-Off OnchainDataNerd revealed market maker Wintermute offloaded a substantial amount of ACT in response to the crash.
What's Next for ACT?
The immediate liquidation wave might slow down, allowing ACT to stabilize. Recovery depends on market sentiment, demand for new buyers, and actions by significant players.
Binance's leverage restrictions, forced liquidations, and market maker sell-offs led to a 50% drop in ACT's price.
