**Bitcoin Derivatives Market Enters Risk Zone Amid Rising Leverage**

The leverage in the derivatives market has long been a double-edged sword, offering traders the potential for high profitability while simultaneously introducing significant risks. Recent data indicates that many traders underestimate these risks during periods of market volatility.

An optimized version of the Estimated Leverage Ratio (ELR) now includes not only Bitcoin reserves but also reserves of top stablecoins, reflecting their growing use as collateral in derivative trading. This comprehensive metric has shown a sharp increase, signaling that the Bitcoin derivatives market is currently in a risk zone.

Given this heightened risk, it is crucial for short-term traders to mitigate exposure and avoid emotional decision-making.