Bitcoin Traders Beware: Record BTC Futures Leverage Sets Stage for Wild Price Swings

Bitcoin’s derivatives market is flashing its loudest warning signal in five years as traders pile into highly leveraged positions.

According to analyst Axel Adler Jr., August’s 30-day change in the Estimated Leverage Ratio (ELR) went above +0.4 for the first time since 2020, a level that has historically come before periods of volatile price moves and sudden liquidations.