Bitcoin’s futures market is showing signs of increased risk as its estimated leverage ratio’s 30-day change has hit its highest level in five years. This metric, which has crossed the +0.4 threshold, suggests that a significant number of leveraged positions have entered the market while Bitcoin’s price is near its historical peak. This heightened leverage could lead to sharp price swings and a greater potential for liquidations if market sentiment changes.
At the same time, institutional demand for cryptocurrency remains strong. Spot Bitcoin ETFs have seen five consecutive days of net inflows, totaling $65.94 million on August 12. BlackRock’s IBIT led the way with $111.4 million in new capital, which helped to offset outflows from other funds like ARK Invest’s and Grayscale’s.
Furthermore, spot Ethereum ETFs have also experienced significant institutional interest, with six straight days of inflows totaling $524 million. A single-day influx of $319 million into BlackRock’s ETHA fund highlights the strong and selective capital rotation occurring within the crypto ETF market. This sustained institutional demand provides a counter-balance to the high leverage in the futures market, potentially offering some stability.
August 2025, Cryptoniteuae
