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According to the analytical company CruptoQuant, the Bitcoin's coefficient of the highest level of 0.195 was reached in December 2021.
The leverage ratio is an indicator that is used by experts to assess the volatility of digital asset prices in the long term.Leverage allows investors to open positions in excess of the sizeIn part, it is the mass liquidation of traders' exchange positions that bringsThe most prominent example was the FTX exchange, which was known for its perpetual futures product, offering traders up to 20 times the leverage claimed by traders.
For investment activities , the decreasing leverage ratio means that the BTC spot market is becoming less sensitive to derivatives market activity.In turn, this demonstrates a decrease in the frequency of sharp price fluctuations, which resulted in mass liquidations of traders' positions.
In general , the decrease in the leverage ratio is regarded by CruptoQuant analysts as a positive event, which indicatesto a more stable and sustainable cryptocurrency market.
Earlier, American Senator Ted Cruz admitted that he is a Bitcoin investor and regularly invests in the first cryptocurrency by capitalization.