Bitcoin’s Leverage Ratio Drops Sharply

Excess leverage in crypto markets has virtually dissappeared which could result in a healthier spot-based market recovery, say analysts.

Global tensions, particularly the Iran-US conflict, have rattled crypto markets and pushed investors away from risk-taking.

“Periods like this are generally not favorable for risk-taking, and this can be clearly observed in the sharp decline of Bitcoin’s Estimated Leverage Ratio on Binance,” said CryptoQuant analyst Darkfost on Monday.

The metric measures the intensity with which investors use leverage and is calculated by comparing the futures Open Interest (OI) with the amount of BTC reserves held on the exchange. Since February, this ratio has fallen sharply from 0.198 to 0.152 — coinciding with Bitcoin dropping from $96,000to $69,000.

A Healthier Market Dynamic

If the ratio remains low while Bitcoin consolidates, it likely signals that spot buying rather than leveraged speculation is becoming the dominant price driver, which is a generally healthier dynamic.

“Lower leverage generally means less systemic pressure, which can help stabilize price action before the market enters a new directional phase.”

🗞️Bitcoin leverage reset after market volatility

“Since February, Bitcoin’s Estimated Leverage Ratio on Binance has dropped from 0.198 to 0.152, representing a significant and rapid decline. This type of move is typically observed after periods of strong volatility and major… pic.twitter.com/q1MVOR5CZa

— Darkfost (@Darkfost_Coc) March 9, 2026

In a separate post, CryptoQuant analyst “IT tech” said that “bottom callers are multiplying.” One metric just hit 29 consecutive days in distress territory, they added, highlighting the Bitcoin long-term holder-to-short-term holder SOPR ratio, which is at 0.89.

“Recent buyers are underwater. LTHs aren’t selling, but they’re not absorbing either. STH capitulation building, but nowhere near extremes. Calling a structural low here is premature.”

Meanwhile, Glassnode reported on Monday that momentum has “firmed modestly,” with RSI lifting from recent lows, “but price action still lacks the strength of a decisive bullish shift.”

“Spot activity remains subdued, with lower trading volume pointing to softer participation even as conditions begin to stabilize.”

Crypto Market Outlook

Spot markets have climbed 4.3% on the day to reach $2.46 trillion in a move that follows US President Trump’s comments that the war with Iran could be “over soon.” Bitcoin reclaimed $70,000 in early trading in Asia on Tuesday as oil prices tanked 28% from Monday’s high of $120.

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Ether remained weak, but it was holding above the $2,000 level at the time of writing. Meanwhile, some altcoins were seeing larger gains, including Hyperliquid and Zcash, which surged more than 11% each.