Create

Bitcoin

The crypto market has witnessed a notable decline in funding rates after Bitcoin (BTC) experienced a sharp pullback from its recent record-breaking highs, signaling potential opportunities for a more sustained upward move towards new highs.
Bitcoin, the leading cryptocurrency by market value, experienced a significant correction overnight, falling 15% to $59,700 after briefly exceeding the $69,000 mark.
This downturn resulted in the forced liquidation of $1 billion worth of leveraged perpetual futures contracts across various digital asset platforms.
One of the most significant developments accompanying Bitcoin's pullback is the normalization of annual funding rates in the crypto perpetual futures market, particularly those tied to the top 25 cryptocurrencies.
These rates, which have risen to triple digits in recent days, are now below 20%, indicating a cooling period in the previously overheated perpetual futures market.
According to experts, although such corrections are painful, they are very important for Bitcoin's medium-term performance.
Related News: <a href="https://en.bitcoinsistemi.com/brics-alliance-led-by-russia-announced-it-will-create-a-blockchain-based-payment-system/" target="_blank" rel="noopener noreferrer nofollow">BRICS Alliance Led by Russia Announced It Will Create a Blockchain-Based Payment System!</a>
The increase in funding rates at the beginning of the week reflected growing bullish sentiment as investors eagerly entered into leveraged positions to benefit from Bitcoin's upward momentum.
However, such enthusiasm generally indicates excessive optimism and is typically seen near intermediate market tops.
Exchanges constantly use funding rates to ensure that futures prices remain in line with spot prices. A positive funding rate indicates that continuous trades are trading at a premium to the spot price and demand for bullish positions is increasing.
*This is not investment advice.
 Continue Reading: <a href="https://en.bitcoinsistemi.com/the-latest-drop-in-bitcoin-relieved-the-futures-market-what-are-the-funding-rates-here-are-the-details/" rel="noopener noreferrer nofollow">The Latest Drop in Bitcoin Relieved the Futures Market! What are the Funding Rates? Here are the Details</a>

The Latest Drop in Bitcoin Relieved the Futures Market! What are the Funding Rates? Here are the Details

Bitcoin Sistemi EN

2024년 3월 6일에 게재된 다른 기사

Grayscale Ventures Into Proof-of-Stake With Dynamic Income Fund

Spot Bitcoin ETFs Hit Record $10 Billion In Trading Volume As Bitcoin Goes On A Rollercoaster Ride

ETH’s Rise to $3,800: Ethereum ETF Anticipation or BTC’s Boost?

The Launch of Raffle Coin (RAFF) Decentralized Platform Sees Solana (SOL) & Polkadot (DOT) Holder...

Analyst Explained the Real Reason for the Decline in Bitcoin, Warned Investors! "It Looks Very Si...

Pushd (PUSHD) Presale Surpasses Expectations as Frog Wif Hat and Uniswap Investors Join the Crypt...

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!