Margin calls on crypto-collateralized loans will create a new class of forced sellers that could amplify selling pressure during sharp market drawdowns at institutional scale.

"It introduces a new class of forced sellers. Margin calls on crypto-collateralized loans create liquidation pressure that did not exist when Bitcoin sat entirely outside the banking system. A sharp drawdown that triggers widespread margin calls at JPMorgan and its eventual competitors could amplify selling in a way that the market has not yet experienced at institutional scale."