quick take
- There has been much debate about whether the recent rise in Bitcoin is due to spot or derivatives.
- A recent insight from yesterday showed a sizeable spot build-up on Coinbase, confirming that it is not driven by derivatives. This is very wholesome.
- The estimated leverage ratio is the ratio of the open interest (OI) of a futures contract to the corresponding exchange balance.
- Leverage ratios across exchanges are below the average of the last three years, but we have yet to see a significant increase in OI.
- OI is now less than 400,000 Bitcoins below the three-year average, but OI is currently 2% the size of Bitcoin’s market cap.
Bitcoin’s ongoing rise not driven by derivatives or leverage first appeared on CryptoSlate.
