2024

Bitcoin

April

Coin

The Bitcoin leverage balance across all exchanges teased intense volatility with traces of upward and downward movements. BTC price as of now hasn’t seen higher highs. 
XBTManager, a community on-chain analyst at CryptoQuant, shared insight into the Bitcoin market using the Estimated Leveraged Ratio (ELR). 
The analyst explained that retail investors have increased risks in the derivative markets. Consequently, investors are now watching to see the impact on Bitcoin’s future price trajectory. 
<h2 class="wp-block-heading" id="h-bitcoin-leverage-balance-the-insight">Bitcoin Leverage Balance, the Insight</h2> 
The Estimated Leverage Ratio measures the proportion of open interest divided by exchange reserves. 
This metric is important for measuring the market’s inclination toward risky positions, providing vital insights into market sentiment. 
According to XBTManager, the relationship between <a href="https://www.thecoinrepublic.com/2025/01/28/bitcoin-price-could-dip-to-70000-before-rally-arthur-hayes/">Bitcoin (BTC) price</a> and leverage ratio is critical for understanding market dynamics. 
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The analyst shared a chart that showed a fluctuating Bitcoin leverage balance in the last 30 days. 
XBTManager pointed out that the leverage ratio rose rapidly during the 2021 bull market cycle. 
This suggested that market participants were confident in the price increase and took on additional risk. The analyst, however, noted that a rising leverage ratio could spark huge liquidations during price declines, causing prices to decline. 
This scenario occurred during the 2022 bear market, a period during which investors reduced their risks, and the market transitioned to a more cautious phase. 
Retail investors have started taking excessive risks in derivative markets as market makers push Bitcoin’s price higher. 
The current dynamics reflect a transition into periods of heightened market enthusiasm. 
Usually, confidence in the market grows during the excitement phases while risks are amplified. Also, strategies are often built around the market’s reverse liquidity at the peak of excitement. 
This usually causes the market to enter a bearish trend. 
<h2 class="wp-block-heading" id="h-what-is-happening-with-btc-price">What is Happening with BTC Price?</h2> 
Bitcoin traded at $102,433 at press time, down slightly by 0.25% in the last 24 hours. The 24-hour low for BTC price is $102,000, while the high reached $102,800. 
Notably, the daily trading volume decreased by 26.9% to $38.23 billion, with the market cap at $2 trillion. 
The price of Bitcoin has found local resistance at $103,347. A breakout above this level may soon lead to a test of the $104,000 area. 
However, the rate is far from the main levels, meaning traders are unlikely to see sharp ups or downs by the end of the week. 
At the same time, the open interest, another key indicator, dropped slightly by 0.3%. This is particularly beneficial for Bitcoin, robustly perched over $102,000. 
The apparent absence of derivatives and leverage signals a healthier and arguably more sustainable market environment. 
<h2 class="wp-block-heading" id="h-btc-etf-miner-squeeze-and-forecasts">BTC ETF, Miner Squeeze, and Forecasts</h2> 
Meanwhile, the spot <a href="https://www.thecoinrepublic.com/2025/01/27/bitcoin-etfs-surge-with-1-76b-inflows-ethereum-etfs-struggle/">Bitcoin Exchange-Traded Funds (ETFs)</a> have recovered slightly after a previous day’s outflows. 
On Tuesday, January 28, the funds saw total inflows reaching $18.4 million. BlackRock’s IBIT recorded inflows of $30.1 million, while ARK Invest’s ARKB experienced outflows of $11.7 million. 
The rest of the funds recorded zero net inflows. 
Across the <a href="https://www.thecoinrepublic.com/2024/12/12/bitcoin-mining-drops-as-prices-surge-back-above-100k-will-prices-keep-rising/">Bitcoin mining</a> sector, investment management firm D.E. Shaw has acquired an unidentified position in Riot Platforms. 
The move comes after another activist investor, Starboard, took a stake in the RIOT last year. The Bitcoin mining industry faced an intense profit squeeze in April 2024 following the halving. 
This event slashed mining profitability by half, leading some miners to look for ways to diversify their revenue sources. 
The forecast for BTC price 2025 indicates greater gains since historical data is consistent with previous bull market tops. Bitwise <a href="https://www.thecoinrepublic.com/2024/12/11/bitcoin-ethereum-solana-to-see-new-aths-2025-price-prediction/">forecasted</a> that Bitcoin will hit $200,000 this year, driven by rising ETF inflows and institutional adoption. 
The post <a href="https://www.thecoinrepublic.com/2025/01/30/bitcoin-leverage-balance-teases-high-volatility-what-to-expect-from-btc-price/">Bitcoin Leverage Balance Teases High Volatility, What To Expect From BTC Price?</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.

Bitcoin Leverage Balance Teases High Volatility, What To Expect From BTC Price?

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