- Bitcoin’s Market Leverage became an annual high, signaling of enormous risk appetite and ‘greed’.
- Can bull Momentum retain with $ 1.2 trillion on non -realized profit?
Bitcoin’s [BTC] Remained only 4% lower than the all -time $ 112k, but speculative activity rose to annual extremes.
The latest data pointed to a sharp increase in risk-up behavior, even while the market kept its breath near important resistance.
Bitcoin -Leverbooming is at the top of the annual range
According to Cryptuquant, BTCs Estimated lever ratio All exchanges jumped to 0.27, the highest reading in the past 12 months.
Source: Cryptuquant
While this was an aggressive risk -etlust and A Bullish Outlook Among traders, it also has a reservation: liquidation cascades. With high leverage or borrowed money on the market, wild price fluctuations can wipe out positions in a flash.
Is the market overheated? Not yet!
Despite the high leverage, the market was not frothy or overheated enough to justify panic, per financing percentage facts.
Coinglass data showed that BTC’s financing percentage fluctuated around 2% Apr, far away from the overheated 50%+ levels that were seen at the end of 2024.
Source: Coinglass
In short, the current lever levels are still healthy for BTC to push higher, assuming that other factors remain positive.
In the meantime, in the case of a liquidation hunt, the most important levels to view $ 103k and $ 111k were viewed in the short term. These were large liquidity pools and potential price magnets.
In fact, around $ 8 billion in livered bulls can run around $ 103k danger if the short correction drives up the level.
Source: Coinglass
Profit pressure builds up
Another potential sales-side pressure for bulls to consider is the high level of non-realized profit for the current BTC value.
According to Glassnode, the current profitability Resaled Q4 2024 levels -a risk factor when holders start locking profits.
“The total non-realized profit is an estimated $ 1.2 T, which supports the substantial value valuation that is experienced by Bitcoin investors, but also the stimulus for potential sales-tilt pressure that can arise when sentiment shifts.”
Source: Glassnode
Other extra short-term macro-towind are the Trump -Deadline rate on July 9 and the recently accepted reconciliation account.
In particular Coinbase -analysts projected That the American treasury could borrow money after the bill had increased the American debt limit to $ 5 trillion.
Such loans would drain the liquidity of the US dollar and have a negative influence on risk-to-assets such as BTC.
With the current ‘greed level‘On the market, this soured sentiment could accelerate the profitable scenario that is shared by Glassnode.