According to data from the on-chain analysis resource CryptoQuant, although the price of Bitcoin has fallen sharply in the past 24 hours. However, the estimated leverage ratio reached 0.224, a record high.
This indicator is calculated by dividing the exchange’s open positions by the token reserve, and the result shows how much leverage the trader uses on average. A higher ratio, such as 0.22, indicates that more investors are taking high leverage risk. On the contrary, lower value means that traders are increasingly avoiding risks in derivatives transactions.