The post Ethereum’s Leverage Ratio Hits New High of 0.57, Predicting Increased Price Volatility Compared to Bitcoin appeared on BitcoinEthereumNews.com.

As of January 3rd, data from CryptoQuant indicates that Ethereum’s leverage ratio has surged to a notable 0.57. This marks a sharp increase from the 0.37 recorded at the start of Q4 2024. The leverage ratio is calculated by taking the total open interest of both standard futures and perpetual futures contracts against the total amount of ETH held in related trading platform wallets. Such an uptick suggests that traders are increasingly utilizing leverage, signaling heightened risk appetite and speculation within the market. Comparatively, Bitcoin’s leverage ratio is significantly lower at 0.269, despite reaching its highest level since early 2023. This figure is still shy of the historical peak of 0.36 achieved in October 2022. Analysts at CryptoQuant anticipate that the volatility of Ethereum’s price may be roughly double that of Bitcoin in the impending trading sessions, highlighting the differing risk profiles associated with these two major cryptocurrencies. Source: https://en.coinotag.com/breakingnews/ethereums-leverage-ratio-hits-new-high-of-0-57-predicting-increased-price-volatility-compared-to-bitcoin/

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Filed under: News - @ January 3, 2025 1:24 pm