“The futures market has undergone a large -scale reduction in loans using a credit shoulder, the volume of which can be compared to the collapse during the prohibition of mining in China in 2021. This was reported by the Cryptoquant Contribwer under the nickname Darkfost. “The Estimated Leverage Ratio (ELR) indicator fell to a critical level of -0.25 in three days. This indicates the fundamental impact of geopolitical tension, including conflict […]”, – WRITE: Businessua.com.ua
The futures market has undergone a large -scale reduction in loans using a credit shoulder, the volume of which can be compared to the collapse during the prohibition of mining in China in 2021 year. This was reported by the Cryptoquant Contribwer under the nickname Darkfost.
“The Estimated Leverage Ratio (ELR) indicator fell to a critical level of -0.25 in three days. This testifies to the fundamental influence of geopolitical tension, including the conflict between the US and Iran, the behavior of investors and the general dynamics of the market, ”the expert said.
Dynamics of the ELR indicator. Data: Cryptoquant.
For comparison, in May -June 2021, the ELR value was reduced to -0.35 in May -June 2021.
“But then it went to it a whole month,” the analyst emphasized.
In his opinion, such a rapid fall in the indicator indicates a sharp decrease in open interest. The reason for this is not only liquidation, but also “voluntary closure of positions by traders who seek to reduce the risks.”
“Such a sharp fall in ELR demonstrates the predominance of bear moods and short -term anxiety. At the same time, new opportunities often arise at such moments, ”Darkfost said.
The analyst is currently expending volatility in the market, so it warns that “the use of a shoulder is associated with increased risks.”
Earlier, the analyst Omkar Godboul found out who actively sells bitcoin after a breakdown of $ 100,000.
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