CryptoQuant CEO Ki-Young Ju recently took to Twitter to express concern over the rising leverage in the Bitcoin (BTC) perpetual futures market. According to on-chain data, leverage is reaching excessive levels on major exchanges, putting traders at risk of liquidations and market instability. Ju pointed out that maximum drawdown, a measure of price volatility, has been relatively small compared to historical levels. This has allowed traders who use 3x leverage to trade with relative stability, avoiding liquidations. However, he cautioned that the situation could change rapidly if volatility increases, highlighting the importance of managing leverage prudently. Traders and investors should exercise caution when using leverage in futures trading, as it can amplify both profits and losses. Excessive leverage can lead to liquidations, where positions are forcibly closed by the exchange, resulting in significant financial losses. To mitigate risks, traders should carefully consider their risk tolerance, use stop-loss orders, and monitor market conditions closely before entering leveraged positions. By practicing sound risk management, traders can navigate volatile markets and protect their capital.