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What in the world is going on with crypto? Where do we go now? Don’t get out the pitchforks just yet, folks. And remember, stay classy. Covered: Macro On-chain Data Derivatives What’s Next? Macro You may not be surprised to hear that the major culprit of the drawdown has been macro factors. More specifically, the […]
The post Bitcoin and Crypto: What Happened? What’s Next? appeared first on CryptosRus.
Ah, the pesky degens–never satisfied, always greedy. The crazy dip we saw early this morning, which wiped out most alt-coin gains in the past couple of weeks is clearly due to excess leverage in the market. Many believe leverage is a plague which is the only thing holding Bitcoin back, too. Bets against (shorts) Bitcoin […]
The post Once Again, Excess Leverage Causes Major Dip: Here’s the Data appeared first on CryptosRus.
Bitcoin's price crossed the $50,000 level for the first time since May.
As a result of this rally, more than 90% of the coins on the network now exceed their purchase price - which means that less than 10% of those who invested in bitcoin have suffered any losses.
Not Like Last Time, for One BIG Reason...
It's important to understand - last time Bitcoin broke $50k a big reason behind the rise was people trading with leverage (borrowed funds) which amplifies both risk and returns. It allowed people with $100 to their name to run up the market by thousands.
If you haven't traded with leverage, this may sound great - but it's a double edged sword, they take back their money and all of yours if it begins to lose even a little.
But This Rally Was Organic, Driven By Real Buying...
This recovery however is based on real buys, with the leverage markets lower than ever. Partially because of how badly it turned out for many last time, and because two huge sources of leverage trading, Binance and FTX Trading, lowered their highest leverage amount from 100X to 20X.
However - be prepared for leverage to make it's return, as more traders become confident that Bitcoin will break the next hyped up price point of $100k, some are expecting to see an increase in leveraged trades to follow if Bitcoin can stabilize above $50k.
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San Francisco Newsroom /
Bitcoin's wild price swings have long been both an opportunity and a challenge for investors. But what if there was a way to potentially double your investment gains without injecting more capital? Enter 2X leveraged Bitcoin ETFs , a high-powered approach that allows investors to magnify their exposure to Bitcoins daily movements without directly buying more Bitcoin.
Investors looking to maximize their returns with a traditional brokerage account, these funds provide a unique way to enhance profits while managing risk effectively. Below, we dive into three of the top 2X leveraged Bitcoin ETFs available today.
Understanding 2X Leveraged Bitcoin ETFs
A leveraged ETF aims to amplify the daily returns of an underlying assetin this case, Bitcoin. If Bitcoin rises 5% in a day, a 2X leveraged Bitcoin ETF could return 10% . However, if Bitcoin drops by 5%, the ETF would fall 10% in value. This daily resetting nature makes these funds a powerful short-term trading tool but also introduces additional risks due to compounding effects over longer holding periods.
There's several options, and you may initially think - they're all 2X Bitcoin ETF, so they all perform the same - but that isn't the case. Each has small differences in how they operate, and thus, how they perform. Here's the rundown:
BTCL T-Rex 2X Long Bitcoin Daily Target ETF
How It Works: BTCL achieves 2X daily exposure to Bitcoin prices by investing in swap agreements with major financial institutions.
- Key Feature: Aims to provide 200% of the daily return of Bitcoins price movements.
- Who Its For: Traders seeking an aggressive short-term position on Bitcoins price fluctuations.
- Risk Factor: Higher volatility due to the use of swap agreements, making it ideal for those who can actively manage their position.
BITU ProShares 2X Bitcoin ETF
How It Works: BITU delivers twice the daily performance of Bitcoin without requiring direct ownership of Bitcoin or dealing with leverage-related costs.
- Key Feature: It can be bought and sold through a traditional brokerage account , making it highly accessible.
- Who Its For: Investors looking for a simple way to gain leveraged Bitcoin exposure without complex futures contracts.
- Risk Factor: As with any 2X ETF, daily rebalancing means returns can diverge from expectations over longer periods due to compounding effects.
BITX Volatility Shares 2X Bitcoin ETF
How It Works: BITX tracks 200% of Bitcoins daily movement through futures contracts, adjusting daily to maintain leverage.
- Key Feature: Uses a rolling futures strategy to maintain exposure and accommodate investor inflows and outflows.
- Who Its For: Investors familiar with futures trading who want a leveraged position in Bitcoin without direct futures contract management.
- Risk Factor: The reliance on rolling futures could lead to costs from contango (when futures prices exceed spot prices), impacting returns.
Is a 2X Bitcoin ETF Right for You?
Leveraged Bitcoin ETFs are best suited for traders and investors who want to maximize gains on short-term Bitcoin movements without tying up extra capital. These funds are designed for those who understand the risks of amplified losses and are comfortable with market volatility.
Additionally, they require active monitoring and rebalancing to maintain optimal exposure. Investors who prefer to trade Bitcoin through a traditional brokerage account rather than directly purchasing and holding the cryptocurrency may find these ETFs a convenient alternative.
Final Thoughts: The Power of Smart Leverage
2X leveraged Bitcoin ETFs offer a strategic way to potentially double their investment without adding more capital. However, they require active management , a clear understanding of leveraged ETF mechanics, and a tolerance for volatility. By choosing the right ETFBTCL, BITU, or BITXinvestors can harness Bitcoins price movements for greater gains while navigating market risks intelligently.
Remember: Leverage works both ways, so while profits can double, losses can too. Approach with caution and a clear investment strategy.
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Author: Oliver Redding
Seattle Newsdesk /
On-chain data shows the Bitcoin estimated leverage ratio has taken a plunge recently; here’s what this could mean for the market. Bitcoin’s Estimated Leverage Ratio Has Sharply Declined Recently As an analyst in a CryptoQuant post pointed out, the leverage has dropped in the market despite the rally. The relevant indicator here is the “estimated [...]
The post Bitcoin Leverage Ratio Plunges, Here’s What This Means appeared first on Crypto Breaking News.
After a historic rally, Bitcoin has faced its first major setback, pulling back 7% from its all-time high of $99,800. This comes after an impressive surge from $67,500 on November 5, marking a nearly 50% climb in just a few weeks. The price action has largely been “only up,” attracting significant attention from traders and investors alike. Related Reading: Ethereum Analyst Predicts $3,700 Once ETH Breaks Through Resistance However, the current pullback highlights growing caution in the market. Market caution said leverage levels remain elevated despite recent deleveraging efforts. Adler’s analysis reveals that increasing short positions and consolidation below the psychological $100,000 mark have contributed to the retracement. While Bitcoin’s performance remains strong in the broader context, this dip signals a potential shift in market sentiment. The question is whether BTC can gather enough momentum to break past the $100,000 barrier or if further consolidation is on the horizon. Many investors consider this pullback a healthy pause in a bullish cycle, but the high leverage levels suggest continued volatility. All eyes are on Bitcoin as it navigates this critical phase, with the next few days likely to determine its short-term direction. Bitcoin Bears Showing Up After three weeks of minimal resistance from bears, signs of their resurgence emerge as Bitcoin struggles to break past the $100,000 level. This critical price point, which many believed would act as a springboard for further gains, has instead highlighted growing bearish sentiment. According to CryptoQuant analyst Axel Adler, the recent price action marks a potential shift in momentum. Adlers analysis on X reveals that despite a wave of recent deleveraging, leverage levels in the market remain elevated. Many key long positions were established around the $93,000 mark, providing bears with an opportunity to profit as BTC failed to push higher. This level has now become a battleground, with Bitcoin’s inability to sustain upward momentum signaling the possibility of further downside risk. Bitcoins price hovers around this key level, raising the likelihood of a correction toward $88,500 or prolonged sideways consolidation below $100,000. Such a scenario would impact Bitcoin and set the tone for altcoin performance in the coming weeks. Related Reading: XRP Analyst Sets $2 Target If It Holds Key Level Can It Reach Multi-Year Highs? The next two weeks will be pivotal as market participants closely watch Bitcoins price action. A decisive move, whether up or down, will shape the broader cryptocurrency landscape and determine whether this is merely a pause in a larger rally or the start of a deeper correction. BTC Testing Fresh Demand Bitcoin is trading at $93,500 as bears regained control after it hit an all-time high last Friday. This retracement marks a shift in momentum, but bulls still can reclaim dominance if the price remains strong above the critical $92,000 support level. Holding this level would keep Bitcoin’s price action structurally bullish and signal resilience in the face of increased selling pressure. If Bitcoin sustains strength above $92,000, the outlook for the short term remains optimistic, with the potential for another attempt at breaking key resistance levels. However, a drop below this mark would signal short-term weakness, potentially triggering further declines. The next critical level to watch would be around $84,000, where the 4-hour 200 EMA aligns as a support zone. This level represents a major line in the sand for bulls. A breakdown below it could accelerate bearish momentum, extending the correction and dampening market sentiment. On the other hand, holding above $92,000 would reinforce bullish confidence, setting the stage for a recovery and a potential pushback toward previous highs. Related Reading: Avalanche Soars 20% In 24 Hours Analyst Reveals Next Price Target Traders and investors are closely watching these levels, as Bitcoins ability to stay above $92,000 will determine whether it remains in a short-term bullish structure or succumbs to bearish pressures. Featured image from Dall-E, chart from TradingView
Bitcoin experienced significant selling pressure after successfully breaking above the $100K mark, a psychological milestone that had investors buzzing with optimism. However, the celebration was short-lived as BTC failed to hold this critical level, dropping as low as $92,500 in less than three days. This sharp downturn has reignited concerns about the market’s stability and Bitcoin’s ability to sustain its upward momentum. Related Reading: Ethereum Downswing To $2,900 Could Be A Buy-The-Dip Opportunity Analyst Expects Bullish Surge Axel Adler, a prominent CryptoQuant analyst, shared valuable insights into the recent market activity. He revealed that the largest deleveraging in the past week took place between January 6 and 7, when Bitcoins price fell from $102K to $100K due to liquidations. This wave of forced selling pushed prices lower, allowing bears to regain control and drive Bitcoins price down further to $92,500. The current market conditions have left investors questioning Bitcoins next move. Will it stabilize and find support to mount another rally, or will the bearish momentum lead to a deeper correction? With the market sentiment teetering between fear and cautious optimism, all eyes remain on Bitcoin as it navigates this critical phase. Bitcoin Regains Ground After Aggressive Sell-Off Despite experiencing an aggressive drop that saw Bitcoin plummet to $92K, the cryptocurrency has managed to find key support at this critical level. In the past few hours, BTC has pushed above this threshold, climbing to $95K, offering a glimmer of hope for bullish investors. The ability to hold and rebound from this support level suggests potential resilience, but uncertainties remain. Prominent CryptoQuant analyst Axel Adler shared insightful data on X about the recent market dynamics. He noted that the largest deleveraging in the last week occurred between January 6 and 7, when Bitcoin’s price dropped from $102K to $100K due to a wave of liquidations. This liquidation event wiped out overleveraged positions and set the stage for bearish activity. Capitalizing on the chaos, bears opened shorts, further driving the price down to $92K. Despite the recent recovery, Adler warns that the current 9K BTC reduction in open interest (OI) doesn’t provide a definitive signal of pressure easing in the market. This leaves Bitcoin’s next move uncertain, with investors closely watching how the price action unfolds in the coming days. Related Reading: Expert Sets $1 Target For Dogecoin Once It Breaks A Multi-Year Trend Details The recovery to $95K is a positive sign, but BTC must reclaim higher levels to confirm bullish momentum and stabilize the market. Until then, traders remain cautious as the potential for further volatility looms. BTC Holds Key Level: Bulls Eye Higher Ground Bitcoin is trading at $95,000, holding above a critical support level and sitting just 2% below its 4-hour 200 EMA at $96,200. The 200 MA, another significant indicator, lies 3% away, adding further importance to Bitcoins current position. These technical levels are pivotal for assessing short-term market momentum and potential bullish recovery. For bulls to reclaim the uptrend, the $95K level must hold as a foundation for further upward movement. A decisive push to reclaim the $98K and $100K levels is crucial. These price points serve as key resistance levels that, once surpassed, could set the stage for a robust leg up, paving the way for Bitcoin to revisit its all-time highs. Failing to hold above $95K could open the door to increased bearish pressure, potentially sending BTC into a deeper consolidation or even testing lower demand zones. However, holding the line at current levels and building momentum could restore investor confidence and create the conditions needed for a sustained rally. Related Reading: Solana Must Reclaim Momentum In The Coming Weeks SOL/BTC Ratio At A Pivotal Point As Bitcoin consolidates, traders and analysts alike are closely monitoring these critical levels to gauge the cryptocurrencys next move. A breakout above the $100K mark could reignite bullish sentiment and set a more defined direction for the market. Featured image from Dall-E, chart from TradingView
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