Bitcoin Market Leverage Eases Amid USDT Surge

According to PANews, Ki Young Ju, the founder and CEO of CryptoQuant, recently shared insights on the current state of the Bitcoin market. He noted that the leverage within the Bitcoin market is showing signs of easing. Specifically, the open interest in BTC-USDT futures has decreased by 7% from its peak levels. This reduction in open interest suggests a potential decrease in leveraged positions, which could lead to a more stable market environment. In addition to the decline in open interest, there has been a significant increase in the balance of USDT held by exchanges. Over the past month, the amount of USDT on exchanges has surged by 32%. This influx of USDT could play a crucial role in the futures market. If the newly deposited USDT is utilized for futures trading, it can serve as collateral, thereby reducing the risk of cascading liquidations in the market. This development is seen as a positive sign for the stability of the Bitcoin market, as it indicates a potential buffer against sudden market downturns.