Even after we had our 80% rally this year, the speculations with Leverage have been decreasing since the FTX collapse. Showing how our current rally is more sustainable than many think.

One question or fear you could say, that we could clearly see for the past months during our leg upwards is that many are just too paranoid after the bear market and the rallies we had there, to have any sustainable move up now. You could say that is “disbelief“ and thus a bullish indicator for us to go further up. But let‘s look at the facts first:

To see whether one rally is sustainable or unsustainable we have too look at the speculation and for that we have to look at the Leverage.

One form of leverage are the Perpetual Futures Contracts, just like Future Contracts you just pay for your asset once it breaks a certain price-level and with perpetual future contracts you have no deadline whatsoever to pay it. Making it probably the most speculative Futures Contract.

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Chart from MitchellHODL

Here we can see how those highly speculative Contracts have been in a free-fall after hitting an ATH just before the FTX collapse and they are still decreasing even during our rally. Showing how there is definitely less speculation in the air right now, which bodes will for the whole rally.

From this perspective we can say that the current rally is indeed way less speculation-driven than many would have though which could be a very good indicator to say that we can rally on further and how many are still in complete disbelief.