Analyst: Bitcoin futures leverage surged in August, increasing market volatility and liquidation risks

ChainCatcher message, CryptoQuant analyst Axel Adler Jr stated, "In August 2025, the estimated leverage ratio (ELR) for Bitcoin futures saw a 30-day change that reached the 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 increasing market vulnerability.

This means that as prices approach historical highs, a large influx of leveraged positions in the futures market could lead to increased market volatility and a heightened risk of severe liquidations."