Bitcoin's 'estimated leverage ratio' hits lowest since December 2021

04/27 08:50

According to CoinDesk, a key metric gauging the use of leverage in the bitcoin (BTC) market continues to slide, signaling low price volatility in the future. Bitcoin's estimated leverage ratio, calculated by dividing the dollar value locked in the active open perpetual futures contracts by the total number of coins held by derivatives exchanges, fell to 0.195 on Wednesday, reaching the lowest since Dec. 20, 2021, per data tracked by analytics firm CryptoQuant. Since October, the ratio has halved indicating a sharp decline in the degree of leverage employed in the market to magnify returns.
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