Recent Report Shows Increasing Activities on Bitcoins Leverage Markets and Whales
Earlier today, Cryptoquant reported that Bitcoin’s estimated leverage ratio just hit an all-time high. Santiment later released a report showing that BTC whale addresses have increased amid the Russian war.
Estimated Leverage Ratio at All-Time High
The two reports were an indication of investors’ rising interest in bitcoin. Meanwhile, BTC, ETH, SOL, AVAX, and altcoin prices have been quite bullish recently. According to Cryptoquant, BTC’s estimated leverage ratio hit an all-time high. Cryptoquant is a network that shows performance metrics of crypto assets. This network reported that BTC investors had an increasing interest in leverage trading over the past few days.
Cryptoquant calculates the estimated leverage ratio by subdividing open interests on exchanges by the coin reserved. The higher the ratio, the higher the leverage risk investors are taking. According to Cryptoquant metrics, the most recent ratio is 0.24. It’s higher than any other ratio shown by BTC in the past.
One of the expected impacts of this is high price volatilities. Some investors are already anticipating a bitcoin price drop as leverage increases. The blue line in Cryptoquant’s charts has been trending up recently. This new all-time high follows the earlier ATH of 0.224 sets on January 7th.
Today, nearly all crypto exchanges offer leverage trading opportunities, leading to an increased estimated leverage ratio. But, this ratio often results in mass liquidation. Last September, there was a mass liquidation of over $3.5 billion worth of longs and shorts.
Bitcoin Whale Addresses Increase
As the estimated leverage ratio increased, Santiment mentioned that the number of whale addresses has jumped by 8.3%. Santiment said, “The amount of #Bitcoin addresses holding 1k to 10k $BTC has jumped by 8.3% since the #Russia–#Ukraine #war was made official. The 2,203 addresses is at a 1-yr high. Both this tier & the 100 to 1k $BTC tier have historically foreshadowed price moves.”
The tweet by Santiment indicates the increasing interest by investors to hold BTC. According to Santiment, the Russian war could be the reason for the rise in bitcoin holding.
Investors from the sanctioned areas are switching from fiat assets to BTC to protect their wealth. Other watchdogs warned that Russia could start using BTC to evade sanctions. This could be the reason for the increased BTC prices in the past few weeks.
Just yesterday, for the first time in three weeks, BTC hit the $44k mark. BTC has been dancing at just around that price in the past 24 hours. The increasing BTC holding amid war could secure BTC’s long-term prices. If BTC prices drop, it will dance around the support level at $35k.
ETH, AVAX, and SOL Performing Fairly Well Amid War
Other coins like ETH, SOL, and AVAX have been bullish in the past few days. Today ETH is trading at $3.13k, a 3.3% value increase in the past 24 hours. Moreover, ETH has gained over 11% in the past seven days. ETH could surpass its next resistance at $3.3k if the bull trend continues.
AVAX, trading at $85, is up by over 8% this week. SOL is trading at $102.6, a 3.7% increase in the past 24 hours and a 19% increase in the past week. The performance of altcoins in the coming weeks largely depends on how BTC will perform in the next few days. If BTC continues a bull trend, then altcoins could gain more.
