Bitcoin now has its highest trading leverage of the year, reflecting a surge in risk-on sentiment and greed.
Bitcoin market is only nearly 4% below ATH, but speculative and leveraged activity has reached record highs in the past 12 months, warning of a potential short-term shakeout.
MAIN CONTENT
Bitcoin trading leverage increases to 0.27, highest level in 1 year.
The market is not too hot despite high leverage, with stable funding rates.
Bitcoin's unrealized profit value hits $1.2 trillion, creating potential profit-taking pressure.
Is Bitcoin Leverage at Its Highest Level of the Year?
Data from CryptoQuant shows that the estimated leverage ratio of Bitcoin across all exchanges has reached 0.27, the highest in the past 12 months, a sign of increased risk appetite and bullish expectations from investors.
High leverage magnifies profits but also carries a high risk of liquidation in the event of sharp price movements. Many leveraged positions can be wiped out quickly during price declines.
Source: CryptoQuant
Is the Bitcoin Market Overheated?
According to Funding Rate data from CoinGlass, despite the increased leverage, the Bitcoin market has not reached “overheating” levels. Funding Rates remain around 2% APR, well below the peak of 50%+ in late 2024.
This shows that the current leverage is still within safe limits, creating favorable conditions for Bitcoin to maintain its upward momentum if other supporting signals do not change negatively.
Source: CoinGlass
“The surge in leverage reflects the ambition of many investors in the market, but is not yet at a level that will cause the market to shake or panic.”
CoinGlass Market Analysis, July 2025
What liquidity milestones should I watch out for during the correction?
The $103,000 and $111,000 price ranges have been identified as key liquidity zones that could attract selling pressure or trigger liquidations if Bitcoin corrects. An estimated $8 billion in leveraged buys are concentrated around the $103,000 mark, posing a significant risk if a correction occurs.
Source: CoinGlass
How is the profit-taking pressure from current investors?
According to Glassnode, the total unrealized profit of the Bitcoin community is reaching about $ 1.2 trillion, equivalent to the peak in Q4 2024. This is a potential pressure for the market as holders may be ready to take profits when market sentiment changes.
“The total unrealized profit of $1.2 trillion reflects the strong price increase of Bitcoin, while also creating a lot of selling pressure if investor sentiment is disturbed.”
Glassnode, July 2025 report
Source: Glassnode
What Macro Challenges Could Affect Bitcoin?
President Trump’s July 9 tariff deadline and new budget reallocation legislation could negatively impact USD liquidity as well as risk assets like Bitcoin. According to Coinbase analysis, the US Treasury’s decision to increase the debt limit to $5 trillion is likely to reduce USD liquidity, putting pressure on the cryptocurrency market.
In a market context where “greed” is high, profit-taking risks can be triggered more quickly if these factors create negative sentiment.
Frequently Asked Questions
What is Bitcoin leverage and why is it important? Leverage represents the ratio of investment capital borrowed on exchanges, indicating the level of risk and expectations of traders. High levels warn of strong volatility. How to assess whether the Bitcoin market is overheating or not? Based on Funding Rate and trading activity, this index helps measure buying and selling pressure, abnormally high levels can signal a bubble market. How does Unrealized Profit affect investor behavior? Large unrealized profits create profit-taking momentum, which can lead to strong selling pressure if sentiment turns bad. Important price levels to watch in BTC price fluctuations? Liquidity zones around $103,000 and $111,000 act as support/resistance to determine the next price direction. What macro factors affect Bitcoin in July 2025? Trump tariff deadline and US debt limit increase law impact USD liquidity, negatively impacting the crypto market.
Source: https://tintucbitcoin.com/bitcoin-don-bay-cao-rui-ro-lon/
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