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\n\t\t\t\t\t\t\t\t\tExcess leverage in crypto markets has virtually dissappeared which could result in a healthier spot-based market recovery, say analysts.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Global tensions, particularly the Iran-US conflict, have rattled crypto markets and pushed investors away from risk-taking.<\/p>\n
\n\u201cPeriods like this are generally not favorable for risk-taking, and this can be clearly observed in the sharp decline of Bitcoin\u2019s Estimated Leverage Ratio on Binance,\u201d said CryptoQuant analyst Darkfost on Monday.<\/p>\n<\/blockquote>\n
The metric measures the intensity with which investors use leverage and is calculated by comparing the futures Open Interest (OI) with the amount of BTC reserves held on the exchange.\u00a0Since February, this ratio has fallen sharply from 0.198 to 0.152 \u2014 coinciding with Bitcoin dropping from $96,000to $69,000.<\/p>\n
A Healthier Market Dynamic<\/h2>\n
If the ratio remains low while Bitcoin consolidates, it likely signals that spot buying rather than leveraged speculation is becoming the dominant price driver, which is a generally healthier dynamic.<\/p>\n
\n\u201cLower leverage generally means less systemic pressure, which can help stabilize price action before the market enters a new directional phase.\u201d<\/p>\n<\/blockquote>\n
\n\ud83d\uddde\ufe0fBitcoin leverage reset after market volatility<\/p>\n
\u201cSince February, Bitcoin\u2019s Estimated Leverage Ratio on Binance has dropped from 0.198 to 0.152, representing a significant and rapid decline. This type of move is typically observed after periods of strong volatility and major\u2026 pic.twitter.com\/q1MVOR5CZa<\/a><\/p>\n
\u2014 Darkfost (@Darkfost_Coc) March 9, 2026<\/a><\/p>\n<\/blockquote>\n
In a separate post, CryptoQuant analyst \u201cIT tech\u201d said<\/a> that \u201cbottom callers are multiplying.\u201d\u00a0One metric just hit 29 consecutive days in distress territory, they added, highlighting the Bitcoin long-term holder-to-short-term holder SOPR ratio, which is at 0.89.<\/p>\n
\n\u201cRecent buyers are underwater. LTHs aren\u2019t selling, but they\u2019re not absorbing either. STH capitulation building, but nowhere near extremes. Calling a structural low here is premature.\u201d<\/p>\n<\/blockquote>\n
Meanwhile, Glassnode reported<\/a> on Monday that momentum has \u201cfirmed modestly,\u201d with RSI lifting from recent lows, \u201cbut price action still lacks the strength of a decisive bullish shift.\u201d<\/p>\n
\n\u201cSpot activity remains subdued, with lower trading volume pointing to softer participation even as conditions begin to stabilize.\u201d<\/p>\n<\/blockquote>\n
Crypto Market Outlook<\/h2>\n
Spot markets have climbed 4.3% on the day to reach $2.46 trillion in a move that follows US President Trump\u2019s comments<\/a> that the war with Iran could be \u201cover soon.\u201d\u00a0Bitcoin reclaimed $70,000 in early trading in Asia on Tuesday as oil prices tanked 28% from Monday\u2019s high<\/a> of $120.<\/p>\n
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Ether remained weak, but it was holding above the $2,000 level at the time of writing.\u00a0Meanwhile, some altcoins were seeing larger gains, including Hyperliquid and Zcash, which surged more than 11% each.<\/p>\n
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