According to market reports, CryptoQuant CEO Ki Young Ju has observed that leverage levels in BTC-USDT perpetual contracts are gradually decreasing.
He further explained that this indicator is returning to the state seen before the approval of Bitcoin ETFs, indicating a more rational market sentiment. Despite ongoing Bitcoin purchases by MicroStrategy (MSTR) and continuous inflows into ETFs, these factors are no longer sufficient to prevent forced liquidations of overly extended long positions.
Key insights:
- Declining leverage suggests reduced speculative activity
- Market structure is reverting to pre-ETF approval conditions
- Long liquidations highlight increasing pressure for market correction