- The month so far has seen an uptick in BTC’s leverage ratio.
- The lack of corresponding price growth puts the coin at risk of further decline.
Bitcoin’s [BTC] estimated leverage ratio has risen in the past few days, even as its price has declined. This suggests that traders are becoming more leveraged or borrowing more money to trade the leading crypto asset, pseudonymous CryptoQuant analyst BQYoutube finds in a new report.
How much are 1,10,100 BTCs worth today?
BTC’s estimated leverage ratio tracks the average amount of borrowed funds (leverage) that traders use to trade the asset.
Typically, when BTC’s leverage ratio climbs, it could be taken as a sign of bullish sentiment, as it suggests that traders are confident that BTC’s value will continue to rise in price.
However, it could also be a sign of risk-taking, as traders with high leverage are more vulnerable to liquidations if the market moves against them.
This spells “doom” for BTC
According to the CryptoQuant analyst, the uptick in BTC’s estimated leverage ratio has “been constantly building up with funding rates and exchange reserve along.”
At press time, the coin’s funding rate was 0.0124%. According to data tracked by Coinglass, it has increased by over 115% since 7 October.
However, with a decline in BTC’s value in the past few days, th
Go to Source to See Full Article
Author: Abiodun Oladokun
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
