Crypto Funding Rates Reset As Bitcoin Pullback From $69K
Bitcoin’s overnight pullback from record highs has normalized funding rates in the crypto perpetual futures market.
The leading cryptocurrency fell 10% to $59,700 after reaching a new lifetime high above $69,000. This correction led to the closure of $1 billion worth of leveraged perpetual futures bets across digital asset markets.
The CoinDesk 20 Index (CD20) rose to a high of $2,627 but has since pulled back to $2,496. Since then, annualized funding rates or the cost of holding leveraged bets in perpetual futures tied to the top 25 cryptocurrencies have reset to less than 20%, down significantly from triple-digit figures observed a few days ago.
This cooling of the overheated perpetual futures market opens doors for a more long-lasting move to record highs. A positive funding rate indicates that perpetuals are trading at a premium to the spot price, indicating increased demand for bullish bets.
(With inputs from Shikha Singh)
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