Bitcoin Funding Rates Turn Negative Amid Price Rally to $95,000
Bitcoin's price has risen from a low of $74,000 to over $95,000, marking a 12% increase in the last week. This rebound comes after a period of correction and volatility.
Bitcoin Negative Funding Rates Return Amid Price Rally
- A divergence between price action and funding rates on perpetual futures contracts has been noted.
- Despite Bitcoin’s price increase, negative funding rates indicate traders are hedging against potential downside risks.
- This trend raises concerns about the sustainability of the current rally and the possibility of a short-term pullback.
- Similar patterns were observed during previous corrections when negative funding rates persisted amid price rallies.
- The cautious positioning among traders suggests an imbalance that could lead to a short-term correction.
STH-Realized Price and Structural Considerations
- The Short-Term Holder Realized Price (STH-RP) reflects the average cost basis of coins held by recent market participants.
- Currently, Bitcoin is near this threshold, which may influence near-term momentum.
- A potential pullback could strengthen market structure if it leads to healthier accumulation and removes weak hands.
