Perp Traders Remain Quiet As Bitcoin Struggles To Hold $30,000
26 Mayo 2022 - 12:00PM
NEWSBTC
Bitcoin has been struggling to hold on to the $30,000 level for the
better part of this week, failing more often than not. While there
have been various reactions from different parts of the market such
as the ETFs, perpetual traders seem to have taken this as a sign to
hold off on their activities. What this has led to is a
continuation of the neutral or below-neutral funding rates that
have been recorded in the past couple of weeks. Bitcoin Funding
Rates Unmoved For the past few months, bitcoin funding rates have
been tethering around the neutral and below neutral levels. This
has been the case through both market recoveries and downtrends,
although there have been periods of slight deviations where funding
rates have recovered into the positive but even these have been
short-lived. Related Reading | Institutional Investors Seek
Safe Haven In Crypto Products Amid Market Uncertainty The last time
that the funding rate saw a sharp recovery had been May 12th on the
Binance exchange, after which funding rates had once more returned
to trending at the neutral and below neutral line. This is
interesting given that open interest in perpetual had surged to new
all-time highs during this time. Funding rates fall below
neutral | Source: Arcane Research The 21 bitcoin funding rate
intervals on the Binance and Bybit exchanges have been dominated by
below-neutral funding rates. A total of 16 funding rates have been
neural while 5 have been neutral funding rates. All this while, the
perps have continued to trade at a reasonable discount to the spot.
Leverage Still Surging Even though bitcoin funding rates have been
straggling, it has not affected the performance of open interest
(OI). OI had declined significantly in the previous week but last
week saw BTC denominated open interest retrace its steps and add
41,000 BTC. This brought the total denominated OI to touch new
all-time highs of 290,000BTC, beating the previous May 4th high of
282,000 BTC. Just a week after open interest had dived more than
35,000 BTC. Mostly, the surge in open interest has followed the
times when the funding rates have been below neutral. At times
where funding rates have been neutral or above neutral, open
interest has usually been down. BTC fails to hold above $30,000 |
Source: BTCUSD on TradingView.com What this suggests is that there
will likely be more volatility coming into the market. This could
happen regardless of whether the price recovers or continues to
decline. However, the growth in open interest usually precedes a
large recovery trend such as the one recorded during the July 26th
short squeeze. So more than likely, it will be a recovery in price
that will follow this surge in volatility. Related Reading
| Bitcoin On-Chain Activity Throttled After LUNA Collapse
Bitcoin remains the largest cryptocurrency in the space with a
market cap of $552 billion. It is up 5.10% in the last 24 hours to
be trading at $29,200 at the time of this writing. Featured image
from CoinDesk, charts from Arcane Research and TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the
occasional funny tweet…
Bitcoin (COIN:BTCUSD)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Bitcoin (COIN:BTCUSD)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024