The funding rate for Bitcoin perpetual futures has been reset after $370 million in contracts was liquidated. Is that a good sign?
Leverage News
Leverage is an investment strategy that involves using borrowed capital or a combination of different derivative instruments to increase the potential rate of return on investments made in various markets and across many asset classes. Although borrowing funds used by companies to finance assets is also known as leverage, the term is normally used to denote an investment style that depends on appropriating investor funds to short-term positions with the aim of generating exponential profits over a brief timeframe.
Using leverage can expose investors to unlimited risk, especially if the capital is used to sell derivative instruments, such as options and futures, in the event that the price moves opposite to the desired direction. Generally practiced by institutional investors, large banks and hedge funds, there is a growing trend of retail investors using leverage to access expensive trading opportunities in the hope of profiting from an event or a price trend reversal in a particular asset.
In the cryptocurrency space, most centralized exchanges allow leverage trading to enable users to trade larger amounts. Leveraged trading can increase potential gains, but it also carries a high risk, particularly in the volatile cryptocurrency market. For example, the exchange may be forced to sell users’ assets and liquidate holdings if the market goes in the opposite direction of their position.
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Ether futures and options reflect pro traders' confidence in the bull run.
16096Demand for BTC futures soars to $35 billion, but options markets show no signs of excessive optimism.
11292Traders’ strong appetite for leverage could be creating the perfect scenario for cascading liquidations.
15680ETH price nears the $4,000 level, but derivatives data points to a slightly overheated market.
20332Billions of dollars in leverage was wiped from the crypto market as Bitcoin plunged 14% in a few hours after briefly notching a new all-time high.
11503DOGE rallied 95% in a week, but analysts signal that the bull run is only starting.
18388Demand for Ether leverage sharply increased in the past 24 hours, but data does not point to liquidations being the main driver for the price correction.
12384$60,000 within range after 12.7% gains in 24 hours? Not so fast, according to Bitcoin derivatives metrics.
12894Ethereum futures open interest soars to $10.6 billion as investor excitement for a spot ETH ETF approval increases.
13603Ether’s price struggles at the $3,000 level, but data hints at a resumption of the bull trend.
14179BTC futures open interest approaches a record high and today’s sharp sell-off triggered alarm from traders.
16889The spot Bitcoin ETFs' saw $4.93 billion in net inflow but where are the “new” investors?
18766Binance urged users to convert and redeem their tokens into other assets before the deadline.
24276ETH bulls call for $3,000 as the next stop for Ether, but the altcoin corrected by 46% the last time it traded above this level.
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