ChainCatcher Message, CryptoQuant analyst Axel Adler Jr stated, "In August 2025, the estimated leverage ratio (ELR) for Bitcoin futures saw a 30-day change reach its highest level in the past five years, exceeding the critical value of +0.4. This threshold has typically appeared during peak periods of high leverage and increased market vulnerability.

This means that as 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."