Matrixport: Bitcoin’s low funding rate suggests spot purchases are driving the rally, enabling a market recovery.
Alyssa Davidson
Posted: September 30, 2024 5:44 AM Updated: September 30, 2024 5:44 AM
Correction and fact check date: September 30, 2024, 5:44 AM
briefly
Matrixport reports that Bitcoin’s funding ratio is approaching zero, suggesting traders may increase their long positions, pushing the price higher.
Cryptocurrency services provider Matrixport shared its latest analysis, highlighting that despite Bitcoin’s general volatility, its funding rate is close to zero. This indicates that despite the recent Bitcoin rally, futures traders are not putting much weight on long positions. As a result, this situation may cause traders to increase their long positions, potentially pushing the price higher.
The company also noted that the low funding ratio suggests that the recent rally may have been driven by spot buying, which is generally more strategic and long-term compared to speculative futures activity. This is seen as a positive sign that the market is not overly leveraged and there is room for further growth.
Bitcoin has been weak since last week’s bull market.
As of this writing, Bitcoin is trading at $64,198, down more than 2.18% in the last 24 hours.
The price fell above $66,000 this morning. The coin’s 24-hour low and high were recorded at $64,066 and $66,069, respectively. This downward trend comes despite $1.11 billion in weekly inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) as of September 27, according to SosoValue data.
Additionally, Bitcoin’s market dominance decreased by 0.48% and now stands at 55.97%. Meanwhile, its current market capitalization exceeds $1.26 trillion.
The cryptocurrency has given back some of its recent gains as markets anticipate U.S. Federal Reserve Chairman Jerome Powell’s upcoming speech and labor market data release expected on Friday.
Chairman Jerome Powell will discuss the economic outlook and may also provide insight into the Federal Reserve’s monetary policy. In particular, his comments on inflation and interest rates often influence market movements, including the cryptocurrency sector. Additionally, the U.S. Department of Labor will release its monthly Nonfarm payrolls report, which provides an overview of the U.S. job market and economic health. August’s figures suggested a weakening labor market, but there are expectations that September’s figures will improve.
Meanwhile, the global cryptocurrency market capitalization decreased by 1.06%, reaching $2.27 trillion. On the other hand, according to data from CoinMarketCap, the overall cryptocurrency market size increased to $62.64 billion in the last 24 hours, a notable increase of 30.15%.
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About the author
As MPost’s resident journalist, Alisa specializes in the broad areas of cryptocurrencies, zero-knowledge proofs, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.
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Alyssa Davidson
As MPost’s resident journalist, Alisa specializes in the broad areas of cryptocurrencies, zero-knowledge proofs, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.
more articles