The Bitcoin Open Interest to Market Cap Ratio has surged alongside the recent price increase to a new all-time high. The Open Interest to Market Cap Ratio, as explained by Satoshi Club, shows an overheating trend in Bitcoin's derivatives market compared to its Market Cap. This ratio indicates the volume of 'Paper' BTC in relation to the asset's spot value. Despite expectations of the ratio decreasing with Market Cap growth, it has risen sharply, reaching 6%. Historically, high ratios have preceded market crashes due to excessive leverage. The current surge in the ratio raises concerns about potential market instability. The trend suggests a growing presence of derivatives positions, posing a risk of leverage washouts. Bitcoin's price is nearing a record high at $76,300, highlighting the ongoing market dynamics. Read more AI-generated news on: https://app.chaingpt.org/news
Bitcoin Open Interest to Market Cap Ratio Surge
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BTC
88,011.46
+0.27%
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