Darkfost
Leverage position are declining as traders' risk appetite diminishes.
Since January 29th, the future Estimated Leverage Ratio has been evolving in negative area. The ELR is calculated by dividing Open Interest by the exchange reserves. This metric reflects the amount of leverage used, providing insights into traders sentiment. Currently, the ELR sits around -0.13, indicating that traders are reducing leverage as their risk appetite declines. Political and economic uncertainty surrounding Trump’s policies is adding fear to risk markets, prompting traders to secure their positions and disminish risk exposure. Monitoring this trend could be helpful in identifying a potential shift in trader sentiment and eventually signaling a market reversal. For now the broader sentiment among traders remains bearish.