12 March 2023 09:52, UTC
Reading time: ~2 m
Leading on-chain data analytics provider CryptoQuant tweeted on March 12 that Bitcoin funding rates have hit a 4-month low. Additionally, Ethereum funding rates hit a 6-month low according to the platform.
$BTC funding rates hits a 4-month low.$ETH funding rates hits a 6-month low.
Live Chart 👇https://t.co/T5p1Nxmc6o pic.twitter.com/NiKp212pXj
— CryptoQuant.com (@cryptoquant_com) March 12, 2023
Crypto analyst Few commented on CryptoQuant’s post explaining the current scenario with Bitcoin. According to Few, there is a shift from USDC to BTC, leading to a significant premium for BTC on Coinbase as they combine USD and USDC order books. This premium has resulted in a significant negative funding on perpetual contracts.
While some people believe this may be a short squeeze, there is currently no evidence to support this hypothesis.
On Saturday, Bitcoin (BTC) rebounded above $20,000, defying the high volatility that currently characterizes financial markets. Interestingly, this happened despite the Federal Deposit Insurance Corporation (FDIC) announcing its decision to close Silicon Valley Bank. BTC/USD experienced an intraday peak of $20,792.53, just one day after dropping to a low of $19,628.25.
The slight increase in Bitcoin’s price today appears to be correlated with the 14-day relative strength index (RSI) finding a floor at 27.00. As of now, the index is at 28.46, while Bitcoin is priced at $20,279.45, after experiencing some earlier gains that have since tapered off.
It’s expected that market volatility will persist in the upcoming days, which could cause Bitcoin’s value to fluctuate above and below $20,000 throughout the weekend.
Meanwhile, Ethereum (ETH) experienced a significant surge in value, as prices climbed back up above $1,400. After hitting a low of $1,378.53 the day before, ETH/USD rose to a high of $1,481.32 on Saturday.
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