Bitcoin Price Drops Below $100K Amid Decreased Funding Rates

Bitcoin experienced a price increase of 5% on January 6th, reaching $102,760 before correcting and trading between $96k and $102k. The total trading volume was $6.58 billion.

Current average funding rate is 0.009%, below the neutral level of 0.01%
Weekly moving average of perpetual funding rates decreased from 0.026% in mid-December to 0.009%
A decline in funding rates indicates cautious long-term trading sentiment among investors

Funding Rate Insights

The average funding rate reflects market sentiment, with positive rates benefiting long positions. Recent data shows:

Funding rate's weekly moving average at 0.009%, indicating caution among investors
Open Interest-Weighted Funding Rate increased to 0.0058%, below January 5th’s high of 0.0113%
Volume-Weighted Funding Rate rose to 0.0051%, still under the previous high of 0.0111%

Market Activity

Despite subdued funding rates, derivatives trading activity increased:

Daily trading volume surged by 42% to $85 billion
Open interest rose by 2%
Long/Short ratio stands at 1.0243, indicating neutral sentiment
Chande Momentum Index (CMI) reached 58.71 during the rally above $100k but slowed after the correction

Investor caution remains as Bitcoin aims to stabilize above the $100k threshold.