@BOMBERuss 8 January 2022 more from that month

According to the CryptoQuant analytical platform, the calculated leverage ratio for Bitcoin reached a historic high this week. In general, this indicator indicates the volume of positions opened by traders with leverage. At the historical maximum of the coefficient, the volume of liquidations of positions remains relatively small. We tell you about the situation and its importance in more detail. The leverage ratio is calculated as a result of dividing the exchange's cryptocurrency reserves by the volume of positions opened on it. When calculating the volume of open positions, both the funds of traders and the funds of the exchange are taken into account. This week, the metric reached a historic high in the area of 0.244 units. Note that the higher the coefficient value, the greater the share of leveraged positions in the total volume of open positions on the exchange. This means that at the moment traders are ready to take on more risks, because margin trading always involves the risk of liquidating a position — as well as the possibility of more earnings.