Near Record High Funding Rate Suggests Bitcoin Pullback Not Over

  • 📰 CoinDesk
  • ⏱ Reading Time:
  • 58 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 63%

United States Headlines News

United States Latest News,United States Headlines

Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.

Bitcoin hit a record high above $73,500 about three weeks ago and then quickly retreated to the $61,000 area. It's since retraced to the current $67,600, giving bulls some hope that new records are imminent. At least one sentiment indicator, though, indicates that the price correction has more room to run.

The so-called futures funding rate – payments to traders based on the difference between perpetual contract markets and spot prices – is around a record high level,."Funding rates represent traders' sentiments in the perpetual swaps market and the amount is proportional to the number of contracts," the team explained. Positive funding rates indicate that long position traders are dominant and are willing to pay funding to short traders.

Positive funding rates, CryptoQuant continued, suggest long traders – those betting on higher prices – are dominating the market and willing to pay funding to shorts, i.e. those betting on lower prices. The last time funding rates were this high was in April 2021. Bitcoin subsequently collapsed from above $60,000 to below $30,000 just three months later.Interestingly, the CryptoQuant report comes alongside recent data from the U.S. Commodities Futures Trading Commission showing record futures short positions from hedge funds and commodity trading advisors .in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 291. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Donald Trump's Chances of Winning 2024 Election Soar to Near-Record HighTrump's odds of winning the 2024 presidential election reached 50 percent after Monday's Supreme Court ruling.
Source: Newsweek - 🏆 468. / 52 Read more »

Gold price steadies near record high as US inflation data loomsNo 1 source of global mining news and opinion
Source: mining - 🏆 449. / 53 Read more »

Dislocations of the High-Rate Era: Q1 Borrowing Activity Hits Near-Record LevelsBorrowing activity in the leveraged loan market has hit near-record levels in Q1, but this does not indicate a revival of company balance sheets. The market has seen a big increase in troubled leveraged loans, which are floating-rate and subject to interest rate hikes. Investment banks provide these loans but sell off most of the exposure to investors. However, borrowing activity in the market slowed down in 2022 as banks and investors reduced their exposure to credit risk.
Source: axios - 🏆 302. / 63 Read more »

Gold price stands tall near record high, around $2,300 amid geopolitical risksGold prices (XAU/USD) touched a fresh record high, around the $2,300 mark, during the Asian session on Thursday and remain well supported by a combination of factors.
Source: FXStreetNews - 🏆 14. / 72 Read more »

Sandy police urge drivers to slow down after high-speed traffic stops near Alta High SchoolPolice urged caution Monday after an officer made three recent traffic stops at high speeds on the road next to Alta High School.
Source: KSLcom - 🏆 549. / 51 Read more »

28 Stylish Things Under $30 With Great ReviewsProof high style and high ratings don't have to come with a high price tag.
Source: BuzzFeed - 🏆 730. / 51 Read more »