As January 2024 unfolded, Bitcoin's perpetual futures market witnessed a whirlwind of changes. Initially, traders were highly optimistic, demonstrated by a soaring Bitcoin price and a premium funding rate indicating a bullish stance. However, as the month progressed, this sentiment took a roller-coaster ride—Bitcoin's price saw dramatic fluctuations, and the funding rate experienced a significant downturn. Amidst this volatility, a new player emerged on January 10, potentially altering the landscape of cryptocurrency investment. The introduction of spot Bitcoin ETFs presented an alternative, purportedly lower-risk avenue for Bitcoin exposure, subtly hinting at a shift in investor preference and market dynamics. What could have caused the sharp drop in the funding rate, and how did the market react to the advent of Bitcoin ETFs? The answers may signal a deeper transformation in how investors are approaching cryptocurrency investments in 2024.
Here’s why Bitcoin perpetual futures market saw high volatility in January Here’s why Bitcoin perpetual futures market saw high volatility in January
January sees traders reassessing Bitcoin perpetual futures amidst emerging ETF options.
2 min read
Updated: Jan. 31, 2024 at 7:30 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
