Meta Description: Bitcoin and Ether are at their high leverage ratio as per
Crypto Quant. Bitcoin traded in the narrowest span weekly since October 2020.
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A Breakout from The Tightest Range in Two Years Appears to Be Occurring in
Within the past two years, the cryptocurrency market appears to be poised to
break out of the narrowest trading range by some measures.
Based on the calculations and measurements, the leverage ratios have
indicated that the largest crypto market value tokens are Ether and Bitcoin.
Though the prices for both of them declined more than 50% this year, they are
still at the top.
The calculation calculates this amount through the amount of open interest for
perpetual swap contracts dividing them by the amount of coins reserved in the
exchange. Subsequently, the amount of the reserved assets of coins is tracked
by the blockchain data-site CryptoQuant.
What are Predictions of the Traders for the Crypto Market?
Though, the folks and other crypto market experts think that the
cryptocurrency market is stabilized and aiming to make large speculative
However, it is also said that September is not turning out to be a
good month for crypto. Though there is no specic reason for that, they call it a
Nevertheless, Darius Sit, a co-founder of Singapore-based Crypto fund QCP
Capital also pointed out that people who are labeling it as a tail-risk, or having
Report: Bitcoin News
a doubt of loss due to the rare event happening now, will soon ‘get prices out.’
Current Situation of Bitcoin and Other Cryptocurrencies in the Crypto Market
Crypto experts and traders favor perpetual contracts, which according to the
traders, don’t expire. They promote such contracts because it allows them
highly leveraged positions without compromising that much on their assets.
Currently, Bitcoin is estimated to hold about 40% of the market value of all
cryptocurrencies. In the rst week of September, it traded within a range of
5.4%, the narrowest one since October 2020, per the data compiled by
However, during the lull two years ago, the prices of Bitcoin were smooth and
eventually pushed to a high record increase in April 2021. However, since June,
the cryptocurrencies are stagnated because of the aftermath of the Terra
stable coin ecosystem, the bankruptcies of Voyager Digital and Celsius
Network, and the demise of Hedge Fund 3 Arrows Capital.
This morning, Bitcoin advanced 0.8% to $19,900 in New York, while Ether rose
to 4.3% at $1,666. Despite the recent aggressive comments from the Federal
Reserve about the economic slowdown and inflation indicating the higher risks
in investing in the crypto market, more traders and investors are putting on
bullish leveraged bets.
Overall, it is expected that the biggest catalyst in boosting the leverage will
likely be linked with the highly anticipated upgrade of the Ethereum
blockchain. The upgrade the expected later this month.
Moreover, the move of the commercially important network from the current
mining system to more energy systems using staked coins is also expected this
month. According to Shifiliang Tang, chief crypto investment officer, “As we get
closer to the Merge, ETH leverage will continue to build up.”
Though the funding rates of Bitcoin and Ethereum perpetual contracts were
turned negative in the past few weeks, when the rates are positive, it will be
more interesting for the traders holding their investment for so long.