Fun

Bitcoin weekly funding rate reflects investor caution, yet BTC price pushes higher

News Feed - 2024-07-16 04:07:00

Marcel Pechman4 hours agoBitcoin weekly funding rate reflects investor caution, yet BTC price pushes higherBitcoin trades above $63,000 but the futures weekly funding rate shows pro traders are cautious.2388 Total views3 Total sharesListen to article 0:00Market AnalysisOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin (BTC) price surged 9.7% from July 13 to July 15, pushing it to around $63,500. This rally managed to reverse the losses from the previous nine days, yet the $65,000 resistance level remained unbroken for four consecutive weeks. Some traders attribute this recovery to speculation that China may lift its long-standing ban on Bitcoin. However, no official statement from the Chinese government has confirmed such rumors.Bitcoin derivatives markets are not projecting optimism


Despite the positive outlook, which includes a leading US presidential candidate expressing support for Bitcoin, BTC derivatives do not reflect the same enthusiasm. Market participants are now wondering if there is sufficient demand to break the $65,000 barrier and whether the weekend gains can be sustained.Source:BTC_for_Freedom


Analysts have firmly denied the rumors, stating that China is unlikely to allow its citizens to freely trade Bitcoin using the local Renminbi currency. Mikko Ohtamaa, the co-founder of algorithmic investment protocol Trading Strategy, emphasized that a significant shift in China"s stance on Bitcoin would conflict with the government"s political agenda to curb "capital flight". Additionally, experts note that Chinese investors are currently prohibited from investing in spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong, despite its close ties with mainland China.


The Republican National Committee (RNC), whose leading candidate is former US President Donald Trump, passed a draft of a policy platform on July 8. The platform aims to "defend the right to mine Bitcoin and ensure every American has the right to self-custody of their digital assets and transact free from government surveillance and control." It also accuses Democrats of engaging in an "unlawful" crackdown on cryptocurrencies.


Will Clemente, founder of crypto research firm Reflexivity Research, suggested that Bitcoin"s weekend gains indicate a higher likelihood of Trump being elected as the next US president in the November election. Analysts also pointed out that Bitcoin"s bullish momentum increased during Trump"s Pennsylvania rally, coinciding with the former president surviving an assassination attempt. In essence, the market anticipates more favorable regulations compared to the policies implemented under the current Biden administration.


To determine whether crypto traders are gaining confidence in $63,000 becoming a support level, it"s crucial to analyze the perpetual futures funding rate. This indicator, typically updated every 8 hours, reflects the demand for leverage among buyers (longs) and sellers (shorts). Although the size of positions is equal on both sides, a positive funding rate indicates that longs are paying for leverage.Bitcoin futures 8-hour average funding rate. Source: Coinglass


The data shows a relatively neutral funding rate of 0.005% per 8 hours, which equates to 0.10% per 7 days. This cost is negligible for most traders and significantly lower than the 1.5% level associated with bullish markets. To further confirm the absence of optimism, it"s essential to examine Bitcoin"s monthly futures.Investors’ lack of enthusiasm could trigger a surprise rally


Professional traders often prefer monthly contracts due to the absence of a funding rate. In neutral markets, these instruments trade at a premium of 5% to 10% to account for their extended settlement period.


Related:BTC price demands $63K flip as BlackRock CEO calls Bitcoin "legitimate"Bitcoin 2-month futures premium relative to spot markets. Source: Laevitas.ch


The data indicates that the BTC futures premium increased to 11% on July 15, surpassing the neutral range of 10% for the first time in nearly two weeks. This level suggests moderate optimism, which is particularly encouraging given that Bitcoin is still 14% below its all-time high of $73,757 in March.


Ultimately, traders should not be concerned about the perpetual contracts funding rate remaining stable. The less confident investors are that the $65,000 level will be reclaimed, the greater the surprise effect, which tends to trigger forced liquidation of shorts and further propel price gains.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Cryptocurrencies# Federal Reserve# Central Bank# Funding# Bitcoin Price# Markets# Elections# Donald Trump# Interest Rate# Leverage# Futures# Market Analysis# Joe BidenAdd reaction

News Feed

Ergo (ERG) Token Is Now Listed on Bitcoin.com Exchange
Ergo (ERG) Token Is Now Listed on Bitcoin.com Exchange press release PRESS RELEASE. Bitcoin.com Exchange is ecstatic to announce the listing of ERG, being availab
Jesse Coghlan2 hours agoCME Group to launch BTC, ETH reference rates aimed at Asia’s investorsCME reported nearly half of its crypto volume year to date came from non-U.S. trading hours and around 11% from the Asia Pac
Chainlink Price Jumped More Than 45% in 48 Hours and 440% in Twelve Months
Chainlink Price Jumped More Than 45% in 48 Hours and 440% in Twelve MonthsChainlink’s token surged more than 45% from $9.53 to $14.09 between Friday and Sunday data shows.
How to Red Flag Scams: Bitcoin Doubler Club, Cryptomia247, Mining Cheap, Orelex, and Wintrust
How to Red Flag Scams: Bitcoin Doubler Club, Cryptomia247, Mining Cheap, Orelex, and Wintrust Last week’s news.Bitcoin.com post warning about common bitcoin scams like &ldq
PowerTrade Management Team Explains the Benefits of Automated Market Makers
PowerTrade Management Team Explains the Benefits of Automated Market Makers PowerTrade is an easy-to-use crypto options trading platform, enabling traders to maximize ROI through a
Rio De Janeiro to Invest 1% of Its Treasury in Cryptocurrency
Rio De Janeiro to Invest 1% of Its Treasury in Cryptocurrency Rio de Janeiro, one of the largest cities in Brazil, will invest part of its Treasury in cryptocurrencies. The announc
SEC and Gensler believed Ether was security for at least a year
Helen Partz9 hours agoSEC and Gensler believed Ether was security for at least a yearIn April 2023, Gensler refused to answer repeated questions on whether the SEC believed Ether was a security.6388 Total views5 Total sh
Derek Andersen5 hours agoSouth Korean Shinhan Bank completes stablecoin remittance pilot with Asian partnersThe bank used the Hedera network to settle payments in South Korean, Thai and Taiwanese currencies in real-time
Bitcoin Price Crash Not Over? Why A Decline To $89,000 Is Possible
Este artículo también está disponible en español. The Bitcoin price could crashif it fails to hold key resistance levels. A crypto analyst has revealed that a decline to
Ertha Partners with Cryowar
Ertha Partners with Cryowar sponsored Ertha, one of the most highly-anticipated metaverse projects, recently launched it’s native ERTHA token to much success on Huobi Primeli
Alibaba’s Ant Financial Starts Pre-Launch Testing of Business Blockchain
Ant Financial, the fintech arm of Chinese tech giant Alibaba Group, has launched the testing stage for its blockchain network aimed to support small and medium-sized businesses. Spe
Bitcoin Miners Catch a Break as Mining Difficulty Drops for the First Time in 3 Months
Bitcoin Miners Catch a Break as Mining Difficulty Drops for the First Time in 3 Months Bitcoin miners got a small break on March 3, after the network’s mining difficulty shi