Digital Assets Reach $3 Trillion Milestone Amid Leverage Buildup

Digital assets have made a significant recovery after a major slump, with their market value reaching $3 trillion for the first time since January.

This milestone comes on the heels of Bitcoin's impressive rally and a recent announcement by the US Treasury to increase buybacks of long-dated bonds, which has added over $740 billion in value to the market since last month, according to CoinGecko data.

However, traders are also piling into leveraged bets in perpetual futures, increasing the risk of rapid price swings. Open interest in these contracts across various tokens has climbed to nearly $160 billion, the highest since late October last year, Coinglass data show.