Where is the hidden leverage in the market now?

Collapse of leverage would mark the market top.

The 2020/21 cycle ended when hidden leverage became apparent, causing market deleveraging and forced token dumping.

By hidden leverage I mean:

• BlockFi, Celsius, etc., lending users' money to ThreeArrowsCapital for 'supercycle' trade

Crypto natives who sold to stablecoins and deposited to earn yield to CeFi were unaware their funds were being reinvested this way.

• FTX using user funds

• Grayscale's Widow Maker trade

• Terra's UST leverage was obvious, but: 1) people ignored it as LUNA pumped, 2) Jump Trading's backstopping UST was hidden

Leverage always finds sneaky ways to enter the system. Where is it now?

A few places to look at:

• Microstrategy (Grayscale's Widowmaker 2.0 anyone?)

• Ethena??

• LRT looping...?

@eth_strategy onchain Microstrategy for $ETH could become one, but still too early to tell.

SAB121 withdrawal allows banks to custody crypto, thus crypto collateral loans could add to the hidden leverage.

Uncollateralized RWA lending could increase in the future.. but the market is still young...

The fact that no big deleveraging event happened makes me believe we haven't topped.

Maybe this cycle could top like 2017/18 one which collapsed due to 1) ICO token overprinting 2) regulatory crackdown...

But regulatory crackdown is reversing now. Bullish for alts.

Seems this bull run is healthy as it's driven buy spot buying (spot BTC/ETH ETFs) vs. hidden leverage.

But leverage will creep in the system over time.

What am I missing?

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。