Bitcoin Price has shown some signs of recovery amid the increased uncertainty in the crypto market. BTC price is up by over 4%...

Loaning your bitcoin invites an element of risk that you may not need to incur. You should not make any financial, investment, trading or...

Join Our Telegram channel to stay up to date on breaking news coverage The global cryptocurrency market has displayed a positive trend over the weekend...

Permissionless is the brainchild of Blockworks and Bankless. Over 5,500 people attended the inaugural event in 2022, making Permissionless the world’s largest DeFi conference. ...

The post Bitcoin(BTC) Price On The Brink Of Falling Back To $35,000! Are Whales Gearing Up For Another Crash? appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

  The crypto sphere is engulfed in darkness as the inflation rate in the U.S Soares to 7.9%. In addition, the fear of FED’s meeting approaching the horizon, with a hike in interest rates, haunts the community. The market capitalization of the industry is presently at $1.86 T. Which has seen a marginal difference of 0.1% …

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 ratio has been at high values recently | Source: CryptoQuant As you can see in the above graph, while the price of the coin has gone down, the leverage ratio has remained at high values. Related Reading | Bitcoin Prices Dragged Down By Geopolitical Tensions, Ukraine Nuke Plant Fire The open interest has also declined slightly, which means there are fewer positions open currently. This implies that the average leverage per position has actually gone up. The quant in the post believes that this trend may show that Bitcoin investors are now getting bolder and taking more risks. Since the funding rate is about neutral right now (another indicator that can help us estimate the ratio between longs and shorts), it implies there are about as many long positions as short positions. Related Reading | Bitcoin Bearish Signal: Exchanges Observe Huge Inflow From Long-Term Holders The price action in the near future may be of interest as a sharp move in either direction can cause a squeeze and push the value of Bitcoin further in that direction. BTC Price At the time of writing, Bitcoin’s price floats around $41.4k, up 5% in the last week. BTC's price seems to have plunged down over the past day | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com