Bitcoin is @ $18345 this morning

Crypto markets to see ‘explosive volatility’ soon: Arcane Research

“After weeks of reduced volatility, cryptocurrencies like Bitcoin are likely to see sharp price changes in the short to medium term, according to one analyst.

The current situation in cryptocurrency markets could potentially generate “explosive volatility” due to massive leverage and recent low volatility, Arcane Research analyst Vetle Lunde suggested.

Lunde pointed to “leverage bonanza,” or leverage going parabolic in the crypto derivatives market, while Bitcoin has continued to hover around $19,000 over the past few weeks.

In crypto trading, leverage refers to using borrowed funds to make trades in order to profit bigger through contracts like perpetual swaps. According to Arcane, notional open interest (OI) in Bitcoin perpetual contracts was nearing 500,000 BTC as of Oct. 11, which marked parabolic growth in leverage amid Bitcoin’s flattening volatility.”

https://cointelegraph.com/news/crypto-markets-to-see-explosive-volatility-soon-arcane-research