Bitcoin Leverage Ratio Dips: Signals Relief and Potential Rally

Bitcoin’s estimated leverage ratio (ELR) has declined from its July-August peak, alleviating concerns of a sharp correction and potentially fostering price stability at current elevated levels. Data from CryptoQuant indicates the ELR reached above 0.27 before falling sharply in early August to around 0.25, followed by stabilization with minor fluctuations. This decline coincides with Bitcoin’s price staying near $119,000, indicating a possible shift away from speculative leverage towards genuine buying and liquidity.