Bitcoin enthusiasts looking to hold long positions or leveraged bullish bets in the perpetual futures market are facing record-high costs. As bitcoin surges beyond $45,000 for the first time since April 2022, global average perpetual funding rates hit an all-time high of 66% annualised during Asian trading hours, according to data from Matrixport.
Perpetuals, a type of futures contract with no expiry date, utilise the funding rate mechanism to align their prices with the current market value of the cryptocurrency. Positive funding rates indicate that perpetuals are trading at a premium to the spot price, with long positions paying shorts to maintain their open positions. Negative rates imply the opposite. Exchanges calculate funding rates every eight hours.
Markus Thielen, Matrixport's Head of Research and Strategy, and 10x Research's Founder, highlighted the significance of the current funding rate, stating, "This morning, the funding rate is reaching a new high at +66%. This means longs pay shorts 66% per year to stay long." The chart reflects a sustained elevation in funding rates, even during the year-end holiday season, signaling a prevailing bullish sentiment in the market.
Contrary to expectations of a slowdown during the holiday period, the Bitcoin funding rate has maintained its heightened levels. Thielen suggests that this phenomenon indicates sustained bullishness among crypto traders who anticipate the imminent approval of a Bitcoin ETF.
As Bitcoin's funding rates soar to unprecedented levels, the crypto market remains ablaze with optimism. Traders, undeterred by holiday festivities, continue to exhibit a strong belief in the cryptocurrency's potential. The sustained elevation in funding rates reflects not just a temporary surge but a robust bullish sentiment, possibly fueled by anticipations of regulatory developments, such as the much-anticipated approval of a Bitcoin ETF. As the market navigates these uncharted waters, it becomes crucial for investors to stay vigilant and adapt to the evolving dynamics, considering the potential impact on trading strategies in the coming weeks.
US-based Bitcoin ETFs see robust capital inflows of $257.3 million, signaling renewed investor interest. Notable providers like Grayscale and BlackRock report positive inflows, reflecting a bullish sentiment. Debates on transparency and market manipulation resurface amidst BTC's stability at $66,109.
Xu LinCryptocurrency market bounce aligns with stablecoin market cap growth, signaling increased industry inflows. Recent plateau suggests stagnant sentiment. Future stablecoin trends may offer insights into broader market direction.
Huang BoBitcoin remains stable above $66,000, with significant whale accumulation indicating bullish sentiment. Large investors acquire over 3400 BTC, fueling anticipation of a price rally. Market sentiment suggests increased demand from whales may drive upward movement. Despite subdued trading, the positive trend in the U.S. Spot Bitcoin ETF boosts investor confidence.
EdmundBitcoin surged to $66,000 but faces potential correction with 18,000 options expiring today. Max Pain at $63,000 suggests price pressure. Despite softer CPI data, demand for short-term downside protection remains. Long-term outlook optimistic, with growing institutional involvement, especially with CME Group's Bitcoin spot trading introduction.
Xu Lin600 companies invest $3.5 billion in spot Bitcoin ETFs via SEC filings. Major players include Morgan Stanley and Millennium Management. Despite recent decreases in inflows, demand remains strong among financial institutions.
Huang BoBitcoin's correlation with US stocks rises, indicating market shift. Despite economic uncertainties, Bitcoin rebounds, outpacing S&P 500. ETF inflows signal investor interest. Whale activity decline noted, but could signal bullish trend if reversed.
EdmundOn May 15, US spot bitcoin ETFs saw robust performance, accruing $303 million in gains over three days. Blackrock's IBIT observed zero inflows, while Grayscale's GBTC recorded $27 million inflows. FBTC led with $131 million inflows, emphasizing a competitive landscape among ETFs.
Xu LinWhale loses 1,155 BTC ($71M) in sophisticated hack, highlighting crypto security risks. Hacker exploits phishing tactic, underscores importance of offline key generation, hardware wallets, and cautious transaction practices. Tips include verifying addresses, conducting test transfers, and exploring multi-signature methods for added security.
Huang BoToncoin [TON] emerges as strong competitor to Bitcoin [BTC] in Layer 1 Network. Toncoin outperforms BTC with 160% gain, higher active addresses. Despite surge, trader sentiment sours, contrasting Bitcoin's positive sentiment.
EdmundBracebridge Capital invests $363 million in Bitcoin ETFs, joining institutional trend. Wisconsin becomes first local government to disclose Bitcoin investment. Major institutions like JPMorgan, Wells Fargo, BNP Paribas, and BNY Mellon also enter crypto space.
Xu LinHuang acknowledged Zach's contributions to the crypto community and expressed that taking legal action was a last resort.
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