Bitcoin futures markets are showing signs of cooling down, with the Bitcoin Futures Power Index dropping to zero in August after a period of positive readings that aligned with price increases. CryptoQuant analysts attribute this slowdown in market momentum to a decrease in open interest, funding rates, and taker order imbalances. As Bitcoin nears its all-time high, this neutral reading raises concerns about a potential turn into negative territory, historically associated with market corrections. Meanwhile, the estimated leverage ratio for Bitcoin futures has surged to its highest level in five years. This surge is driven by the increasing number of leveraged positions as prices remain elevated. Such a phenomenon can create an environment where sharp liquidations occur if prices take a downturn. Despite this, on-chain metrics show BTC’s Z-Score at +1.5 standard deviations above its one-year average. The Adjusted Price-to-Demand (APD) ratio remains negative at −1.5, suggesting that price gains are still outpacing on-chain activity. However, as network activity needs to catch up with prices for a healthier equilibrium, this gap could narrow or reverse in the coming weeks. Bitcoin’s correlation with the S&P 500 has risen to 80%, indicating that macro factors such as interest rate expectations and broader risk sentiment are directly impacting crypto prices. While this correlation is based on a one-week rolling window and is unlikely to persist long-term, it suggests equity market moves will play a significant role in Bitcoin’s performance in the coming weeks. Meanwhile, retail traders have been gaining control of the futures market from institutional whales, leading to potential breakout opportunities as Ethereum also exhibits high leverage despite record institutional investment. This shift highlights the convergence of macro trends and changing participants shaping the landscape for the next big move.