As Bitcoin enthusiasts eagerly anticipated crossing the $100,000 mark, a subtle yet powerful dynamic unfolded beneath the surfaceโone that could make or break this landmark achievement. The estimated leverage ratio (ELR), which gauges the extent of leverage in the market relative to Bitcoin's reserves, skyrocketed, pushing BTC to breathtaking highs. But when November's chill set in, a surprising divergence emerged, hinting at a pivotal market shift. What does this shift reveal about Bitcoin's immediate fate... and could it lay the foundation for sustainable future growth?
Massive deleveraging stopped Bitcoin from breaking through $100k Massive deleveraging stopped Bitcoin from breaking through $100k
High leverage in derivative trading amplified Bitcoin's rally before subsequent deleveraging triggered a sharp correction.
3 min read
Updated: Dec. 3, 2024 at 3:20 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
