What does rising funding rates mean for Bitcoin
The post What does rising funding rates mean for Bitcoin appeared on BitcoinEthereumNews.com. Bitcoin’s annualized funding rate reached a two-month high, impacting trading activity and volatility. Whale interest surged and MVRV ratio declined. In the last few days, Bitcoin[BTC] faced a brief slump, breaching the $27,000 mark. Despite this, the prevailing sentiment regarding cryptocurrency was predominantly positive. Read Bitcoin’s Price Prediction 2023-2024 Funding rates grow One notable development was the surge in Bitcoin’s annualized funding rate, which reached a two-month high of over 7.5%. This rate signifies the cost of holding a position in Bitcoin, influencing how traders approach the market. A notable spike in this rate has the potential to entice more traders into the market, thereby increasing trading activity. However, it also introduces the possibility of elevated volatility, with traders seeking to capitalize on these funding rates. Concurrently, Bitcoin’s open interest also soared to a two-month high as well. Elevated open interest often suggests a growing level of participation in the market. This could potentially result in more liquid markets, a broader diversity of traders, and healthier overall conditions. However, it can also heighten market volatility. Source: glassnode Traders react Moreover, the put-to-call ratio for Bitcoin experienced a shift from 0.5 to 0.46. This decrease indicates an increased inclination towards bullish positions in the market. This sentiment may influence their trading strategies, and it could also be indicative of a market ripe for price increases. Additionally, there was an expansion of Bitcoin’s 25 Delta Skew in recent days. This Skew is used to gauge options traders’ perception of potential large price movements. When this metric rises, it usually signals an increasing demand for protective options, indicating a degree of caution among traders. Source: Velo How are holders holding up Moreover, the number of Bitcoin addresses holding 1 or more BTC grew. These large investors can significantly impact Bitcoin’s market dynamics due…
The post What does rising funding rates mean for Bitcoin appeared on BitcoinEthereumNews.com.
Bitcoin’s annualized funding rate reached a two-month high, impacting trading activity and volatility. Whale interest surged and MVRV ratio declined. In the last few days, Bitcoin[BTC] faced a brief slump, breaching the $27,000 mark. Despite this, the prevailing sentiment regarding cryptocurrency was predominantly positive. Read Bitcoin’s Price Prediction 2023-2024 Funding rates grow One notable development was the surge in Bitcoin’s annualized funding rate, which reached a two-month high of over 7.5%. This rate signifies the cost of holding a position in Bitcoin, influencing how traders approach the market. A notable spike in this rate has the potential to entice more traders into the market, thereby increasing trading activity. However, it also introduces the possibility of elevated volatility, with traders seeking to capitalize on these funding rates. Concurrently, Bitcoin’s open interest also soared to a two-month high as well. Elevated open interest often suggests a growing level of participation in the market. This could potentially result in more liquid markets, a broader diversity of traders, and healthier overall conditions. However, it can also heighten market volatility. Source: glassnode Traders react Moreover, the put-to-call ratio for Bitcoin experienced a shift from 0.5 to 0.46. This decrease indicates an increased inclination towards bullish positions in the market. This sentiment may influence their trading strategies, and it could also be indicative of a market ripe for price increases. Additionally, there was an expansion of Bitcoin’s 25 Delta Skew in recent days. This Skew is used to gauge options traders’ perception of potential large price movements. When this metric rises, it usually signals an increasing demand for protective options, indicating a degree of caution among traders. Source: Velo How are holders holding up Moreover, the number of Bitcoin addresses holding 1 or more BTC grew. These large investors can significantly impact Bitcoin’s market dynamics due…
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