"Bitcoin futures, particularly perpetuals, offer a unique perspective into the crypto market's health. One key metric? Comparing the annualized perpetual funding rates to their 3-month rolling basis. Historically, a surge or dip in this rate has signaled significant Bitcoin price fluctuations. But why does this happen? The answer lies in the demand for leverage... Now, with the current de-risking environment and an increase in the futures open interest leverage ratio, what could this mean for the Bitcoin price? Is this a sign of caution or renewed confidence among traders? The answer might surprise you..."
What perpetual futures tell us about the current Bitcoin market What perpetual futures tell us about the current Bitcoin market
Bitcoin futures show traders are balancing optimism with caution.
3 min read
Updated: Sep. 20, 2023 at 2:53 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.
