In the ever-evolving landscape of cryptocurrency trading, recent insights from prominent analyst Ki Young Ju highlight a significant shift in Bitcoin's perpetual futures market. According to Ki Young Ju, the BTC-USDT perpetual leverage is now cooling off, marking a return to levels seen before the ETF approvals in January 2024. This development comes after two years where inflows from entities like MicroStrategy (MSTR) and spot Bitcoin ETFs prevented excessive long leverage from being flushed out on exchanges. As this supportive dynamic fades, traders are advised to monitor leverage ratios closely, as the estimated leverage has reverted to pre-ETF norms, potentially signaling reduced overheating in the market.

Understanding BTC Leverage Dynamics and Market Implications

The cooling of BTC-USDT perpetual leverage, as noted by Ki Young Ju on February 5, 2026, suggests a normalization after a period of heightened activity. Historically, leverage in perpetual contracts amplifies both gains and losses, and the data indicates that current levels are approximately back to those in early January 2024, prior to the greenlighting of Bitcoin ETFs. This shift could imply a decrease in speculative fervor, with traders possibly unwinding positions amid fading ETF-driven inflows. For active traders, this presents opportunities to assess support and resistance levels in BTC-USDT pairs. For instance, if leverage continues to cool, Bitcoin's price might stabilize around key moving averages, such as the 50-day EMA, reducing the risk of sudden liquidations that have plagued overleveraged markets in the past.

Delving deeper into trading volumes and on-chain metrics, the reduction in leverage aligns with broader market trends where excessive long positions were sustained by institutional buying. Without real-time data at this moment, we can reference the analyst's estimation that leverage is no longer at the all-time highs mentioned in related discussions, where it was reportedly 2.7 times higher than early 2024 levels. Traders should watch for correlations with trading volumes on major exchanges; a drop in open interest could confirm this cooling trend, potentially leading to lower volatility. In terms of trading strategies, this environment favors scalping or range-bound trades rather than high-leverage longs, especially if Bitcoin hovers near psychological support at $60,000, based on historical patterns post-ETF hype.

Trading Opportunities Amid Cooling Leverage

From a trading perspective, the fading influence of MSTR and ETF inflows opens doors for more balanced market participation. Ki Young Ju's analysis points to a market where excessive leverage is being flushed, which could benefit short-term traders by creating clearer entry points. Consider multiple trading pairs like BTC-USDT and BTC-USDC; with leverage returning to pre-ETF levels, cross-pair arbitrage might emerge if discrepancies in funding rates appear. Market indicators such as the funding rate on perpetual contracts, which often signals overleveraging when positive and high, may now trend neutral, encouraging hedged positions. Institutional flows, previously bolstering longs, are diminishing, so monitoring on-chain metrics like whale transactions could provide early signals of reversals. For example, if daily trading volumes dip below 50 billion USD across exchanges, it might reinforce a bearish sentiment, prompting traders to target resistance at $70,000 with stop-losses.

Overall, this leverage cooldown underscores the importance of risk management in cryptocurrency trading. As the market adjusts to reduced ETF support, savvy traders can capitalize on potential dips by analyzing real-time price movements and volume spikes. While the exact timestamp of Ki Young Ju's observation is February 5, 2026, the implications extend to current strategies, emphasizing caution against overleveraging. By integrating these insights with live market data when available, traders can navigate Bitcoin's volatility more effectively, focusing on sustainable gains rather than speculative highs. This analysis not only highlights trading opportunities but also stresses the need for vigilance in a market prone to rapid shifts, ensuring that positions are backed by solid data and not mere hype.