tanasta2
Estimated leverage ratio has skyrocketed but Bitcoin price hasn't
As seen on the 2nd chart, the current leverage ratio has exceeded the previous level, even higher when bitcoin was at its all-time high. Usually, when the estimated leverage ratio rises, the BTC price also rises. But not this time. If we look at the funding rates, we can see that it is close to zero and the highest points were early this year. Even when BTC hit its all-time high last November, the funding rates were low. This indicates that we are far from FOMO, the "silent rally" that we had from late July to early November was mainly driven by whales and institutions. Combined with decreasing BTC supply on exchanges, this was bound to happen. You would probably also feel that there was a lot more hype in the market early this year or even last year compared to the recent "silent rally" where a lot of retails investors have missed the train. Ideally, I want to see the funding rate goes up to complement the already high leverage ratio for another ultra bull rally.