![Bitcoin’s ongoing rally not derivatives or leverage driven](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2023/01/bitcoin-Insights-3.jpg&w=70&h=37&q=75)
Quick Take
- Many discussions have been around whether the recent Bitcoin rally is spot or derivatives driven.
- With the recent insight yesterday showing considerable spot accumulation on Coinbase, we can confirm it is not being driven by derivatives โ which is exceptionally healthy.
- The Estimated Leverage Ratio is the ratio of the open interest (OI) in futures contracts and the balance of the corresponding exchange.
- We are yet to see a meaningful build-up of OI โ while the leverage ratio across exchanges is below the average of the past three years.
- OI is less than 400,000 Bitcoin below the three-year average โ while OI is currently 2% the size of the Bitcoin market cap.
![Estimated Leverage Ratio: (Source: Glassnode)](https://cryptoslate.com/wp-content/uploads/2023/03/futures-3.png)
![FOI/MC: (Source: Glassnode)](https://cryptoslate.com/wp-content/uploads/2023/03/Future.png)
![Open Interest: (Source: Glassnode)](https://cryptoslate.com/wp-content/uploads/2023/03/futures-1.png)