Estimated leverage ratio

Open interest divided by the value of coins held on exchanges: a rough measure of how much leverage is in the market.

What it means

A high or fast-rising ratio shows a crowded market where liquidations can set off a cascade.

What to watch

The ratio near its highs, and sharp drops in it after a wave of liquidations.

How Compass-Alpha uses it

Background only; not used in any figure on Compass-Alpha.