Bitcoin’s price has recently increased to over $69,000, which is 93% of its all-time high. This impressive performance is due to high leverage trading. Leverage trading allows traders to control a larger position in an asset using borrowed funds, increasing the potential return on investment. However, this comes with risks as it can lead to substantial losses and increased market volatility.
CryptoQuant data shows that the Estimated Leverage Ratio reached a yearly high of 0.22 on October 24th. This ratio compares the open interest in futures contracts to the balance of the corresponding exchange.
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<p>The post Bitcoins Price Hits New High but Leverage Raises Concerns first appeared on CoinBuzzFeed.</p>
