BlockBeats news, on August 13, CryptoQuant analyst Axel Adler Jr. stated that 'in August 2025, the estimated leverage ratio (ELR) of Bitcoin futures has reached its highest level in the past five years, exceeding the critical value of +0.4. This threshold has previously been observed during peaks of high leverage and increased market vulnerability.
This means that when prices approach historical highs, a large influx of leveraged positions in the futures market may lead to increased market volatility and a heightened risk of severe liquidations.
