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\t\t\t\t\t\t\t\tPosted: September 18, 2023 As Bitcoin [BTC]<\/a> traders become increasingly less confident in positive price action in the short term, the coin\u2019s estimated leverage ratio for cash-margined BTC Futures continues to plummet. This, according to a new <\/span>report<\/span><\/a> by pseudonymous CryptoQuant analyst Phi Deltalytics.\u00a0<\/span><\/p>\n BTC\u2019s estimated leverage ratio for cash-margined Futures tracks how much leverage is being used in the coin\u2019s cash-settled Futures market. It is calculated by dividing the total dollar value of Open Interest in cash-margined BTC Futures contracts by the coin\u2019s total market capitalization.<\/span><\/p>\n Is your portfolio green? Check the\u00a0Bitcoin Profit Calculator<\/a><\/p>\n According to Phi, participants in BTC\u2019s Futures market have grown increasingly wary of using leverage (borrowed money) to trade in the coin\u2019s Futures markets. Especially as it continues to face significant resistance around the $30,000-price mark.<\/span><\/p>\n Source: CryptoQuant<\/p>\n<\/div>\n At press time, the coin was trading at $26,669, according to data from <\/span>CoinMarketCap<\/span><\/a>. In fact, BTC has lingered within the narrow price range of $25,000 \u2013 $28,000 since April.\u00a0<\/span><\/p>\n While traders have reduced their leverage-based transactions in BTC\u2019s cash-margined trades, the overall count of open positions in the coin\u2019s Futures markets has climbed.\u00a0<\/span><\/p>\n BTC\u2019s Open Interest started to rise again on 4 September, after it had dropped to a two-month low following the deleveraging event of 17 August. With a reading of $11.14 billion at press time, the coin\u2019s Open Interest has since grown by 10%. This hinted at the re-entry of traders who had previously left the market due to the liquidity flush.<\/span><\/p>\n Source: Coinglass<\/p>\n<\/div>\n When an asset\u2019s Open Interest rallies in this manner, it indicates a hike in the total number of outstanding contracts or positions that have not yet been closed out by either a buyer or a seller. It often suggests increased trading activity and participation in the market with a hike in the number of new positions being created.\u00a0<\/span><\/p>\n Read\u00a0Bitcoin\u2019s [BTC] Price Prediction<\/a>\u00a02023-2024<\/p>\n Also, despite the coin\u2019s narrow price movements and recent headwinds, which caused the crypto to trade below $26,000, its funding rates across cryptocurrency exchanges have remained significantly positive. This, according to data from <\/span>Coinglass<\/span><\/a>.<\/span><\/p>\n
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<\/a><\/p>\nA glimmer of hope?<\/b><\/h3>\n
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