On-chain data shows the Bitcoin futures market has remained heated recently as leverage taken on by investors has been quite high.
Bitcoin Estimated Leverage Ratio Declines A Bit, But Still Remains Very High
Following the rise in derivative activities, the leverage in the market hit a new all-tine high recently, as noted by an analyst in a CryptoQuant post.
The “all exchanges estimated leverage ratio” is an indicator that’s defined as the ratio between the open interest and the derivative exchange reserve.
When the value of this metric is high, it means the average investor is currently using a large amount of leverage on exchanges. Such a trend suggests holders are willing to take high risk currently.
On the other hand, low values of the indicator imply holders are going for a low-risk approach at the moment as they aren’t using much leverage.
Now, here is a chart that shows the trend in the Bitcoin all exchanges estimated leverage ratio over the last couple of years:
The value of the metric seems to have rapidly risen during the last few weeks Source: BTCUSD on TradingViewFeatured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com
Tags: bitcoinBitcoin Futures MarketBitcoin leverageBitcoin Leverage Ratiobtcbtcusd
NewsBTCRead More
Bitcoin is facing a critical juncture as its macro retracement converges with a tight mid-range…
Onchain data shows multiple cost basis metrics confirm heavy demand and investor conviction around the…
Bitcoin’s bearish momentum has since reached a cool-off state, as price maintains above the last…
Executive John Ameriks emphasized Vanguard's core view of the crypto sector hasn't changed, seeing the…
The recommendation is in line with other global asset managers like BlackRock and Bank of…
The Bitcoin market is experiencing a gradual trend reversal following weeks of prolonged price correction…