Bitcoin's Price Stability Amidst Job Report and Analyst Predictions.

1 min read
Source: CoinDesk
Bitcoin's Price Stability Amidst Job Report and Analyst Predictions.
Photo: CoinDesk
TL;DR

Despite Bitcoin's 70% surge this year, the use of leverage in the derivatives market remains muted, indicating a low risk of "liquidations-induced" wild price swings. Liquidations refer to the forced closure of bullish long and bearish short positions in leveraged perpetual futures markets. The ratio between the dollar value locked in perpetual futures and the cryptocurrency's market capitalization has been dropping, signaling low odds of a liquidations cascade. The non-expiring perpetual futures are typically in demand during periods of sideways price action.

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