Crypto analyst warns of “extreme price fluctuations” in BTC
This is indicated by a sharp increase in the leverage ratio
20.06.2023 - 12:00
325
3 min
0
What’s new? A blockchain analyst under the nickname Crazzyblockk has warned that amid the outflow of liquidity from centralized exchanges (CEXs) and increased leverage in the futures markets, the likelihood of “extreme price fluctuations” in bitcoinis growing. According to him, this is evidenced by a sharp increase in the leverage ratio used by traders when the price of the cryptocurrency rises.
Information on the CryptoQuant website
Estimated Leverage Ratio, ELR is the ratio of open interest to the exchange’s reserve. The metric shows how much leverage is used by traders on average. In case of a sharp increase in leverage on the crypto market, volatility is possible.
Analysts’ observations. In early June, Fidelity Investments’ global macro director Jurrien Timmer compared the alternating bullish and bearish cycles in the crypto market to the dot-com bubble of the early 2000s. He said that BTC may survive the crypto winter and take market share away from other digital assets.
As of June 20, 12:15 UTC, bitcoin price chart at $26 916, having gained 1,88% in 24 hours. Weekly growth, according to aggregator CoinGecko, amounted to 3,1%.
According to experts at Santiment, a combination of falling cryptocurrency prices and growing concerns about the effects of lawsuits by the US Securities and Exchange Commission (SEC) against the Binance and Coinbase exchanges led to a drop in trader sentiment to its most negative level since March 2020.
Нападки на Binance, Coinbase и альткоины. Как SEC кошмарила рынок на этой неделе
Подробно рассказываем о последних действиях Комиссии по ценным бумагам и биржам США, которые оказали значительное влияние на крипторынок
In turn, Glassnode found that the SEC’s lawsuits against the platforms had a greater impact on institutions compared to smaller organizations. The experts analyzed investor behavior between June 5 and June 12.
Useful material?
Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024