🔥Bitcoin market leverage growth!
🚨Market volatility warning!
Global futures open interest.
The estimated leverage ratio, which is the ratio of the number of coins held on the exchange, has risen to 0.2060.
This is the highest level since October 2023.
After months of consolidation below 0.20.
This increase shows that traders are increasingly using borrowed funds to amplify their futures positions.
An environment that shows market risk appetite.
Typically, a lower ratio means that traders are taking a more cautious approach.
It is worth noting that the estimated leverage ratio peaked after the collapse of SBF's FTX exchange.
The exchange was once the world's third-largest futures trading platform at the end of 2022.
But then the leverage ratio has been declining until December 2023.
Currently, Bitcoin's high leverage liquidity is mainly concentrated around $58,500.
Therefore, once the price approaches this level, volatility may increase.
Especially when overall market liquidity is still low.
Buy/sell orders can have a huge impact on current market prices.
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