{"id":24857,"date":"2025-06-23T15:27:32","date_gmt":"2025-06-23T12:27:32","guid":{"rendered":"https:\/\/forklog.com\/en\/expert-observes-largest-deleveraging-since-chinas-bitcoin-ban\/"},"modified":"2025-06-23T15:27:32","modified_gmt":"2025-06-23T12:27:32","slug":"expert-observes-largest-deleveraging-since-chinas-bitcoin-ban","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/expert-observes-largest-deleveraging-since-chinas-bitcoin-ban\/","title":{"rendered":"Expert Observes Largest Deleveraging Since China&#8217;s Bitcoin Ban"},"content":{"rendered":"<p>The futures market has experienced a significant reduction in leveraged positions, comparable to the period during China&#8217;s bitcoin mining ban, <a href=\"https:\/\/cryptoquant.com\/insights\/quicktake\/68587139d8b1996d30fb590b-Investors-exit-risk-as-ELR-plunges-to-China-Ban-levels\">according to observations<\/a> by CryptoQuant contributor known as Darkfost.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u201cThe Estimated Leverage Ratio (ELR) dropped to a critical level of -0.25 within three days. This underscores the fundamental impact of geopolitical tensions, particularly the <a href=\"https:\/\/forklog.com\/en\/news\/middle-east-tensions-trigger-cryptocurrency-market-plunge\">conflict between the US and Iran<\/a>, on investor behavior and overall market dynamics,\u201d the expert noted.<\/cite><\/p><\/blockquote>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/CQ-1-1024x576.png\" alt=\"CQ-1\" class=\"wp-image-260871\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/CQ-1-1024x576.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/CQ-1-300x169.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/CQ-1-768x432.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/CQ-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">ELR indicator dynamics. Data: CryptoQuant.<\/figcaption><\/figure>\n<p>For comparison, the ELR fell to -0.35 during the &#8220;China ban&#8221; in May-June 2021.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u201cHowever, it took a whole month to reach that point,\u201d the researcher emphasized.<\/cite><\/p><\/blockquote>\n<p>According to him, the rapid decline in the indicator points to a significant reduction in open interest. The reason is not only liquidations but also \u201cvoluntary closing of positions by traders seeking to reduce risk.\u201d<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u201cSuch a sharp drop in ELR reflects the dominance of bearish sentiment and short-term anxiety. However, it is often in such moments that new opportunities arise,\u201d Darkfost noted.<\/cite><\/p><\/blockquote>\n<p>In the near future, the analyst expects an increase in market volatility, hence \u201cusing leverage involves heightened risks.\u201d<\/p>\n<p>Earlier, analyst Omkar Godbole <a href=\"https:\/\/forklog.com\/en\/news\/analyst-identifies-who-is-selling-bitcoin-above-100000\">discovered<\/a> who is actively selling bitcoin above the $100,000 mark.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The futures market has experienced a significant reduction in leveraged positions, comparable to the period during China&#8217;s bitcoin mining ban, according to observations by CryptoQuant contributor known as Darkfost.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1168,1145],"class_list":["post-24857","post","type-post","status-publish","format-standard","hentry","category-news-and-analysis","tag-crypto-derivatives","tag-market-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=24857"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24857\/revisions"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=24857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=24857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=24857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}