Bitcoin leverage ratio reaches new highs

Bitcoin is struggling with a bear market, but the price manages to reach new highs in its history. When will this inflate and what does it mean for the future?

Register now on Binance, add 50$ and get 100$ bonus voucher!

The “bitcoin leverage ratio chart” is a chart that displays the bitcoin leverage ratio. The green line on the chart represents the daily average bitcoin leverage ratio.

According to CryptoQuant, the projected leverage ratio for Bitcoin (BTC) reached a new all-time high Friday night. More indicators suggest to a rise in leveraged interest, although liquidations have remained modest. 

While the Bitcoin price has fallen off a cliff in the last 24 hours, the estimated leverage ratio has hit an all-time high of 0.224, according to on-chain analytics site CryptoQuant. The metric works by dividing the open interest of an exchange by its currency reserve. The result reveals the average amount of leverage used by traders.

A larger ratio, such as 0.22, suggests that more investors are exposing themselves to high leverage risks. Lower values, on the other hand, indicate that traders are becoming more risk conservative in their derivative trading. Since June 2019, the blue line on the graph below has been trending higher. 

Bitcoin-leverage-ratio-reaches-new-highsBitcoin’s leverage ratio is estimated. CryptoQuant is the source of this information.

Leverage trading is available on most cryptocurrency exchanges, with FTX, Huobi, and Binance leading the way. They’ve all agreed to limit the amount of leverage available to traders in order to avoid large-scale liquidations like the one that occurred in September of last year, when $3.5 billion in longs and shorts were liquidated.

Nonetheless, it hasn’t halted exchanges’ attempts to make leverage trading more accessible to the general public. The CEO of the FTX exchange, Sam Bankman-Fried, announced on Twitter that his “FTX 20x Leveraged Bitcoin Index” had been listed on the Vienna Stock Exchange. Austrian daredevils will soon have access to up to 20x leveraged BTC trading, according to the Wienerborse.

Here’s why Bitcoin traders believe a plunge below $38K would be the worst-case scenario.

Meanwhile, despite a 10% price reduction in the previous three days, according to statistics (formerly ByBt), just half a billion dollars worth of liquidations took occurred across all exchanges, much less than the $600 million worth of liquidations that took place in minutes in March last year.

It’s strange to see the leverage ratio reach new highs and liquidations stay stable, all while the price falls. Is it possible that the market will become much more volatile?

Register now on Binance, add 50$ and get 100$ bonus voucher!

In a tweet, analyst Will Clemente put it up well. “There’s still a chance it’ll work out in your favor.” “All I know for sure is that this celebration has just just begun.”

Watch This Video-

The “bitcoin prices history” is a chart that shows the price of Bitcoin over time. It’s shown in US dollars and it has been trending upwards since its inception.

Related Tags

  • btc: all exchanges estimated leverage ratio
  • cryptoquant
  • what is one bitcoin worth
  • why did bitcoin spike
  • will cryptocurrency crash

Register now on Binance, add 50$ and get 100$ bonus voucher!

Recent Articles

Tonga accepts Bitcoin donations amid tsunami onslaught

A small island of Tonga has been hit by a tsunami, and the country is calling for donations in Bitcoin. The nation’s Prime Minister...

How to Buy Solana (SOL) in India

It is important to know how you can buy SOL in India. It’s no secret that the Indian market has only recently begun to...

How to Buy Flow (FLOW) in India

Flow is a cryptocurrency that was introduced in June 2018. It uses the Ethereum blockchain platform, but has its own built-in digital currency called...

Moonbeam Goes Live on Polkadot, Becomes its First Fully Operational Parachain

Moonbeam, the world’s first fully operational on chain scaling solution was released into the wild this week. The Polkadot-powered platform aims to provide scalability...

Stacks ecosystem becomes #1 Web3 project on Bitcoin

The Ethereum blockchain, which powers the Stacks ecosystem’s token STX, has become the most important web3 project on Bitcoin. The announcement is a sign...

Related Stories