The BTC/USDT futures leverage ratio has returned to levels not seen since before the approval of spot Bitcoin ETFs, signaling a potential stabilization in the cryptocurrency derivatives market. According to CryptoQuant CEO Ki Young Ju, this decline marks a shift from the excessive leverage driven by institutional inflows over the past two years, notably from entities like MicroStrategy and spot Bitcoin ETFs. The reduction in leverage suggests a more cautious approach among traders, with the ratio now approaching figures from January 2024, prior to the U.S. SEC's landmark ETF approvals. This development is seen as a positive indicator for market health, as lower leverage typically reduces speculative pressure and systemic risk, fostering a more sustainable growth environment. Market participants are observing these changes across major trading platforms, with a noted decrease in highly leveraged positions and an increase in hedging activities.