The latest report assessing the Derivative Exchanges of Bitcoin has been released recently. The analysis shows that September has witnessed an increase in the supply of BTC on future exchanges.
The surge initiated at the start of the month, activating the opportunity for short and long liquidity positions. According to several experts, the situation is not good for the traders to deal with in the short term.
As a result, the market is also witnessing a substantial rise in the financial leverage ratio. Traders should note this to be a historical surge in financial leverage. Since it is currently on the rise, the market has a chance to make corrections on some speculative rebounds.
On the other hand, the market is maintaining a high-risk stance. Currently, the BTC Funding Rates indicator is negative, with the bears dominating the financial arena. The division can put pressure on the market to sell more.
A couple of months ago, the crypto derivatives volumes surged to 3.12 trillion dollars. The market accounted for 69% of the total crypto volumes, surging 13% from June 2022. The development boosted the overall cryptocurrency volumes on top cryptocurrency exchanges to 4.51 trillion dollars in July.
The sudden surge has given hope to traders expecting a sheer bear performance for Bitcoin in winter. The expectations were reasonable because the cryptocurrency has been trading at 70% at its all-time high. However, the current standings hint towards a better market stance, inviting users to invest.
Currently, only the most loyal and long-running traders are involved in the market routinely. Thus, the liquidity has been declining, keeping the market diminishing. That is why the recent hike can trigger traders’ push to get back into the market.