What determines the price? : Interview with Ki Young Ju CryptoQuant CEO ①
We have many unique indicators using or on-chain data. For example, the Estimated Leverage Ratio shows all the derivatives exchanges' open interest divided by their BTC reserve on that exchange. The value of this graph goes down, which is an indication that people are trading with low leverage. As you can see from the graph below, the estimated leverage ratio has decreased, meaning that people have opened their positions with low leverage. Leveraged trading is the use of borrowed funds with a contractually determined return to increase the ability of a business to invest and earn an expected higher return. A lower ratio of leverage means that companies operating or traders are generating enough revenue to grow their assets through profits.