Bitcoin’s Perpetual Futures Funding Rates plunged below the 0.01% mark, at press time, retreating sharply from the elevated levels seen during recent market euphoria, according to Glassnode.
The drop shows a cooling in leveraged long positioning; traders are dialing back speculative bets in the derivatives market.
Swift decline in Funding Rates often is a sign of a reset in trader positioning. It reduces the risk of long squeezes, but also hint at a more cautious market tone after weeks of aggressive bullish leverage.
The cooling in Bitcoin’s derivatives market is unfolding alongside a potential supply shock from an unexpected source – a sovereign holder.
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