#Cryptomarketrebound Bitcoin Leverage Ratio on the Rise: Caution, Price May Accelerate But Risks Have Increased!

As the leverage ratio in the Bitcoin (BTC) market increases with the entry into October, this brings both the risk of a rise and the risk of a sharp decline.

In the cryptocurrency market, the Estimated Leverage Ratio (ELR) measures the ratio of open positions to reserves on exchanges, indicating how much leverage investors are using. An increase in the ratio means that even small price movements can lead to large-scale liquidations. Recent data highlighted by a CryptoQuant analyst revealed that the market entered October with much higher leverage than usual.

According to the data, ELR has been steadily rising since the summer months. The rate, which was at 0.21 in May, has now exceeded 0.26. This increase indicates that the risk appetite in the market has significantly strengthened and that investors are turning towards more aggressive leverage usage.

The rise may accelerate, and the declines may be heavier.
The CryptoQuant analyst reminded that in the past periods when ELR rose, there were sharp fluctuations in Bitcoin prices. This situation can accelerate the rises but can also trigger sudden and heavy liquidation waves if the price moves downward.

In short, as the market enters October with strong leverage, both opportunities and serious risks are on the table for investors. For this reason, the CryptoQuant analyst emphasizes the need for caution, especially in leveraged trading.
IT IS NOT INVESTMENT ADVICE