Cryptocurrencies
Bitcoin’s Surge Lacks Extreme Leverage That Powered Past Rallies
- Spread between futures and spot is low relative to February
- Past rallies suggest leveraged players are coming: Ouellette
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Bitcoin’s rebound from the depths of July is still missing one of its usual star players: Leverage.
Crypto traders have yet to meaningfully pile on leverage -- essentially, borrowed money that can amplify returns or losses -- as they have in past rallies. The spread between Bitcoin futures and its spot price has shriveled relative to February, when the cryptocurrency was in the midst of a rally that ultimately reached an all-time high, suggesting that demand for leveraged long positions remains muted.