Why a Key Bitcoin Indicator Is Suggesting Potential for Leverage Washout

A bitcoin indicator is suggesting a build-up of speculative froth in the market, often a recipe for leverage flushout and a sudden drop in price.The chart of the day is presented by crypto.com, the leading crypto platform trusted by over 80 million users worldwide. Let's take a look at the chart of the day. A key indicator on Bitcoin futures and options suggests outside levels of leverage in the market with potential for leverage flush out and a sudden drop in price.

The ratio between the implied yield basis or annualized spread between prices for one month futures and prices in spot markets and options induced one month implied volatility has more than doubled according to data track. But sts digital excess bullish speculation often leads to forced closure of leverage positions due to margin shortage. The liquidations then can end up fueling a sharp price slide.

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