According to on-chain analytics provider Glassnode, it is customary for Bitcoin markets to flush out excess leverage and that is exactly what has happened over the past few days.
A large number of traders increased their leverage exposure in anticipation of the Coinbase direct listing last week. This increase the risk of a long squeeze and cascading liquidations had built up in the system, pushing the price of BTC to an all-time high of $64,900 on April 14.
The report noted that Open Interest across derivatives exchanges also reached a new all-time high of $27.4 billion before almost $5 billion in futures contracts were closed out by the end of the weekend.
#Bitcoin has experienced a volatile week, hitting both new ATHs at $64k before selling off back to $52k.
This week we analyse:
– Hash-rate Drop
– Derivative Leverage Flush Out
– On-chain Sentiment
– New Market Entrants
Read More in The Week On-chain👇https://t.co/2qQYmTgY48
— glassnode (@glassnode) April 19, 2021
Liquid
Źródło: https://cryptopotato.com/derivatives-flush-out-excess-leverage-from-bitcoin-markets/
