{"id":105337,"date":"2020-11-05T09:54:56","date_gmt":"2020-11-05T06:54:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/leverage-is-fueling-bitcoins-rally-to-highest-price-since-january-2018\/"},"modified":"2020-11-05T09:54:56","modified_gmt":"2020-11-05T06:54:56","slug":"leverage-is-fueling-bitcoins-rally-to-highest-price-since-january-2018","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/leverage-is-fueling-bitcoins-rally-to-highest-price-since-january-2018\/","title":{"rendered":"# Leverage is fueling Bitcoin\u2019s rally to highest price since January 2018"},"content":{"rendered":"<p>&#8220;<strong># Leverage is fueling Bitcoin\u2019s rally to highest price since January 2018 <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">On Nov. 4, crypto data market aggregator CryptoQuant <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/1323886314702299139\">published<\/a> a chart indicating Binance\u2019s Estimated Leverage Ratio \u2014 open interest divided by Bitcoin (BTC) reserves \u2014 has pushed into new all-time highs.<\/p>\n<p>The record was set on Nov. 3 after a spike in open interest pushed Binance\u2019s ELR above 0.18 for the first time. The spike in ELR came shortly before Bitcoin established a double-bottom at roughly $13,400. <\/p>\n<p>New data suggests Bitcoin\u2019s bullish push into 2020 highs above $14,000 may have been fuelled by leverage, which could mean markets will continue to see significant volatility in the short term.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/be43daf5-c2f1-4d95-8464-35315aa0a38e.png\"\/><figcaption style=\"text-align: center;\">Binance\u2019s Estimated Leverage Ratio: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/1323886314702299139\">CryptoQuant<\/a><\/figcaption><\/figure>\n<p>However, Binance also recorded its largest daily BTC outflow on Nov. 3, with 58,861 Bitcoin worth $816 exiting the exchange in 24 hours.<\/p>\n<p>Binance was not the only platform to experience a recent spike in open interest, with data from Skew indicating combined open interest in BTC futures is testing all-time highs in the upper-mid $5 billion range. <\/p>\n<p>The growing open interest also comes despite BitMEX\u2019s recent decline in market share, with the exchange currently facing money laundering charges levied by the U.S. Department of Justice.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/e93f4680-29ec-459d-8bb6-4d4869523dfd.png\"\/><figcaption style=\"text-align: center;\">Open interest for BTC futures: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.skew.com\/\">Skew<\/a><\/figcaption><\/figure>\n<p>According to Messari, the boost in open interest may indicate \u201cbullish sentiment,\u201d provided it is being driven by long positions. The research firm also <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/MessariCrypto\/status\/1323694050512408578\">notes<\/a> the data suggests new capital may be entering crypto:<\/p>\n<blockquote><p>\u201cRising prices during an uptrend while open interest is also on the rise could mean that new money is coming into the market.\u201d<\/p><\/blockquote>\n<p>The increasing open interest also comes as the number of BTC on exchanges has been steadily <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/overview\/full\/385?window=block&amp;utm_campaign=pc_n\">dropping<\/a> since May \u2014 suggesting that buyers are accumulating Bitcoin from exchanges and placing them in cold-storage as longer-term investments.<\/p>\n<p><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSDLONGS\/?exchange=BITFINEX\">Long<\/a> positions on Bitfinex have also steadily been gaining since the start of October, pushing up from 25,000 to 29,000 as of this writing. While <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/1323886314702299139\">shorts<\/a> have also spiked since Oct.20, doubling from 3,250 to 6,770, the bulls <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to be firmly in control of the markets.<\/p>\n<p>Over the last couple of hours, BTC has pushed into new highs for 2020 above $14,300.<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/leverage-is-fueling-bitcoin-s-rally-to-highest-price-since-january-2018\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Leverage is fueling Bitcoin\u2019s rally to highest price since January 2018 &#8221; On Nov. 4, crypto data market aggregator CryptoQuant published a chart indicating Binance\u2019s Estimated Leverage Ratio \u2014 open interest divided by Bitcoin (BTC) reserves \u2014 has pushed into new all-time highs. The record was set on Nov. 3 after a spike in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":105338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/256c2a9f-d794-47ca-b37c-bbe3d22499be.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,74862,74972,74863,75846,3123],"class_list":["post-105337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-bitcoin","tag-bitcoin-futures","tag-cryptocurrencies","tag-futures","tag-leverage"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/105337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=105337"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/105337\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/105338"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=105337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=105337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=105337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}