Following the increase in derivative operations, market leverage recently reached an all-time high.
The indicator "All exchanges estimated leverage ratio" is defined as the ratio of open interest to derivative exchange reserve.
The Bitcoin estimated leverage ratio has been climbing in recent weeks and just reached a new high.
This reduction was precipitated by the recent transitory surge in market volatility caused by the CPI announcement.
Despite the decrease, the indicator's value has stayed quite high, indicating that there is still plenty of leverage available in the market.
Because leverage is so high in the Bitcoin futures market right now, a squeeze might occur, causing BTC's price to break out of the range.