Bitcoin, which shot over $ 30,000 during the daytime yesterday, declined to $ 27,200 in the evening after erroneous statements that there was activity in the wallets of the US government and Mt.
While volatility in Bitcoin has been high recently, crypto analytics firm CryptoQuant said that its estimated leverage on BTC is at its lowest level since December 2021.
According to the report of Coindesk, CryptoQuant, which investigates how much leverage Bitcoin investors use in their futures, stated that the leverage measurement will be a signal of low volatility in the BTC price in the future.
“Estimated leverage in Bitcoin fell to 0.195 on Wednesday, reaching the lowest level since December 20, 2021.
This decreasing rate may be a signal that the high volatility seen in Bitcoin price and liquidations in futures may become rare in the face of sudden price volatility.
In this context, the decreasing Bitcoin price volatility may bring more investors to the crypto market.”
Stating that the estimated leverage ratio has been on the decline since the bankruptcy of the crypto money exchange FTX in November 2022, CryptoQuant stated that the continued decrease in the leverage ratio shows that the 75% rally that Bitcoin has experienced since the beginning of 2023 is focused on the spot market.
*Not investment advice.
