Bitcoin Futures Hit 14-Month High as Market Cap Tops $3 Trillion

The global cryptocurrency market cap has surged back above the $3.04 trillion mark, but the rally is being fueled by a dangerous spike in borrowing. Bitcoin traders are back in high-risk mode as leverage in the Bitcoin futures market reaches its highest point since last November. 

According to CryptoQuant analyst Arab Chain, the Estimated Leverage Ratio on Binance climbed to approximately 0.184—the highest level seen since November 2024.

This surge shows that traders are borrowing more to fund their positions, highlighting a renewed appetite for risk. Besides, it also means the market is now more vulnerable to quick liquidations if prices move sharply.

As of writing, according to CoinMarketCap data, Bitcoin was trading at $89,975.25 with a 24-hour trading volume of $51.35 billion. The global crypto market capitalization rose to $3.04 trillion, up 1.06% in the last day. Meanwhile, total crypto trading volume increased 1.00% to $135.97 billion. 

Leverage and market risk

Arab Chain explained, “This dynamic suggests that the market has re-entered an environment more susceptible to liquidations, whether during rapid upward moves or sudden corrections.” A higher leverage ratio typically amplifies short-term volatility. 

Consequently, any sudden price swing could trigger cascades of liquidations, intensifying market movements. Moreover, periods of high leverage often coincide with price expansion, as additional liquidity fuels momentum. However, traders must remain vigilant, as excessive leverage can quickly reverse gains.

CryptoQuant analyst COINDREAM shared a similar perspective. He pointed out that even with short-term ups and downs, whales keep buying Bitcoin while regular retail investors are selling. “Even after the escalation of geopolitical risks, whale holdings on a monthly basis have not declined but instead continued to increase,” he said. This shows that big investors are steadily accumulating, signaling strong confidence among large holders.

Market sentiment and social metrics

Santiment data further shows that Bitcoin traded fairly steadily in mid-2025, with overall mood among traders mostly neutral to slightly positive and attention on Bitcoin staying consistent. However, in October, Bitcoin’s price dropped sharply, and at the same time, interest in Bitcoin fell and online sentiment turned negative.

These drops in sentiment usually happen when Bitcoin hits price lows, showing that traders are selling out of fear. Since late November, Bitcoin has slowly stabilized, and overall mood has returned to a more neutral tone. Right now, Bitcoin is trading near the lower part of its recent range, suggesting that confidence is coming back—but cautiously.

The crypto market is showing caution, with the Fear and Greed Index at 34/100, signaling that investors are leaning toward fear. The Altcoin Season Index sits at 29/100, meaning Bitcoin continues to lead over other cryptocurrencies. Right now, Bitcoin makes up nearly 60% of the total crypto market, while Ethereum holds about 12%, and all other coins share the remaining 29%. 

Derivatives activity also reflects caution: traders have $693 billion in perpetual contracts, which is much higher than the $3.6 billion in regular futures, showing they prefer short-term, leveraged bets over longer-term positions.

Network activity and volatility

Ethereum’s network is running smoothly, with transaction fees very low at just 0.05 Gwei, no matter the speed. These low fees indicate that not many people are actively using the network, so demand for apps and transactions on Ethereum remains quiet. 

At the same time, Bitcoin looks a bit calmer than Ethereum, with its expected price swings lower at 40.61 compared to Ethereum’s 56.63. This means traders think Bitcoin is likely to move less dramatically in price than Ethereum right now.

Also Read: Hyperliquid Tests Key Support Amid Broader Crypto Sell-Off

Follow The Crypto Times on Google News to Stay Updated!