Ethereum Price, Two Times More Volatile Than Bitcoin! This Ratio Peaked - Coin Bulletin

Bitcoin (BTC) is attracting demand from institutional investors, while Ethereum (ETH) is becoming the preferred choice of investors who want to achieve higher returns by using high leverage.

According to CryptoQuant's data, Ethereum's estimated leverage ratio reached a new high, rising from 0.37 at the beginning of the fourth quarter of 2024 to 0.57.

The increasing leverage ratio indicates that investors are using more leverage and that there is an increasing tendency to take risks in the market.

Leverage allows investors to control larger positions in the market with a relatively small capital pool. However, the use of leverage increases liquidation risk by both amplifying gains and losses.

Comparison of Ethereum and Bitcoin

The leverage ratio of Ethereum at 0.57 indicates significant leverage trading in futures contracts compared to the total amount of ETH in exchange wallets.

By comparison, Bitcoin's estimated leverage ratio is currently at 0.269 level. Although this level corresponds to the highest level seen since the beginning of 2023, it remains well below the record of 0.36 recorded in October 2022.

This high leverage ratio in Ethereum indicates that risk appetite and speculative trading are more intense among investors compared to Bitcoin. This situation suggests that in the coming period, ETH price may experience twice as much volatility compared to Bitcoin.