Bitcoin perpetual contracts in Tether USD are showing signs of overleveraging, with the “open interest to USDT reserve ratio” reaching an all-time high at 0.593 on November 10. This is 2.7x higher than in February when the ratio first crossed the dangerous zone. While it is unclear how high Bitcoin will go, there will likely be a painful pullback once the leverage unwinds.
However, the CEO of CryptoQuant remains bullish on Bitcoin in the long term. Despite the potential unwinding, healthy on-chain metrics remain, with retail investor demand reaching a 52-month high in the past 30 days.
