Bitcoin Futures Funding Gets “Aggressively Bearish” as Traders Expect a Retrace
Bitcoin has been caught in the throes of an immense bullish trend throughout the past several days, with buyers in full control of its price action as the cryptocurrency puts some serious distance between its recent lows. It is important to note that the recent rejection at $23,700 proved to be quite significant for the […]
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Bitcoin prices have been volatile during the last few weeks, but have managed to climb higher in value at the same time. This week bitcoin derivatives markets, specifically futures and options, show that crypto asset traders should expect more swings going forward. Some traders believe that the digital currency’s price could fill two unfilled gaps on CME Group’s Bitcoin Futures chart with an upward trajectory toward $18,000. During the last few days, bitcoin (BTC) spiked over the $16k handle, as numerous cryptocurrency markets have seen some significant gains this week. On....
Analysts frequently correlate a high perpetual futures funding rate with market crashes, but is this the best way to analyze the metric? Futures contracts trading has grown immensely over the past year, and proof of this comes from the total rise in open interest. Open interest is the total number of outstanding contracts, and the figure has risen from $3.9 billion to the current $21.5 billion in six months, a 450% increase.Sometimes traders assume that a high or low funding rate and soaring open interest indicate a bullish market, but as Cointelegraph has explained before, this is not the....
As Bitcoin rallies past $57k, Quant explains using on-chain analysis why the cryptocurrency may see a pullback here. Bitcoin Funding Rate And Futures Open Interest Show Rising Values As explained by an analyst in a CryptoQuant post, some BTC indicators are showing values that have historically signaled that a correction could be coming soon. The first metric of relevance is the Bitcoin funding rate, which is defined as the periodic payment that futures contract traders have to pay. Positive values imply most traders are bullish and long traders are paying this fee to short traders. While....
The funding rate for MATIC and AAVE is currently rewarding traders who are leveraged longs, but it might not last for long. Data shows that AAVE and Polygon (MATIC) traders are currently being paid up to 4.3% per week to long future contracts.In the crypto markets, traders are usually bullish, or at least the majority of retail investors are. This causes an interesting phenomenon as it incentives arbitrage desks and whales to sell futures contracts while simultaneously buying on regular spot exchanges.Crypto total market capitalization, USD billion. Source: TradingViewThe above chart shows....
Data shows pro traders are heavily accumulating the current dip in Bitcoin price while retail investors are occupied with trading altcoins. Bitcoin (BTC) has been struggling to sustain the $55,000 support level for the past 16 days, or basically since the April 17 record-high $5 billion long contracts liquidation. The rejection that took place after the $64,900 all-time high had a devastating impact on the sentiment of retail traders, as measured by the perpetual futures funding rate significant drop.However, despite Bitcoin's recent underperformance and today's 6.5% drop, pro traders have....