Over the past week, Bitcoin (BTC) has been enjoying attention from all tiers of investors; from short-term traders to institutional players. This can be seen in the strong performance of spot Bitcoin ETFs in the previous week. Similarly, the Bitcoin derivatives market appears to be witnessing increased risk-taking behavior from traders as shown by recent on-chain data. Bitcoin Market Now In ‘A Risk Zone’ — What’s Happening? Leverage is a tool that allows traders to control substantial positions with a relatively small amount of capital. While leverage helps traders and investors bolster their potential profits, it also opens them up to significant risks, especially when the market volatility is elevated. Related Reading: Solana Struggles To Break $160 Resistance As Top Analyst Predicts A Coming Surge In a recent Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Crazzyblockk revealed that there has been increased leverage use amongst Bitcoin market participants. This on-chain observation is based on the Estimated Leverage Ratio (ELR) metric, which measures the ratio of open interest in futures contracts to the coin rese ..
Support the originator by clicking the read the rest link below.
