On-chain data shows the Bitcoin leverage ratio has continued to stay at high values despite the recent decline in the crypto’s price. Bitcoin Leverage Ratio Hasn’t Budged Much In Response To Price Plunge As pointed out by an analyst in a CryptoQuant post, the BTC leverage ratio has remained at high values recently, despite the price declining to $41k. The “estimated leverage ratio” is an indicator that’s calculated by dividing the open interest with the exchange reserve. In simpler terms, what this metric tells us about is how much leverage Bitcoin futures investors are using at the moment. Here, “open interest” is the measure of the total amount of futures contracts open on derivatives exchanges. And the “exchange reserve” is the total amount of coins currently present in wallets of all derivative exchanges. When the value of the Bitcoin leverage ratio goes up, it means investors have started to add more leverage to their positions. On the other hand, a decline shows futures holders are closing up their positions. This may be due to mass liquidations or because of investors opting to take less risk right now. A mass liquidation event (often called a long or short squeeze) occurs when the price of Bitcoin makes a sharp swing, leading to a cascade of liquidations in the market. Now, here is a chart that shows the trend in the indicator over the past week: Looks like the rati...
XRP Price Prediction For 24 November
