Bitcoin Faces Volatility Rise as Futures Market Shows Signs of Overheating

A metric from bitcoin’s perpetual futures market suggests some traders may have become overleveraged during the recent rally to above $18,000.

The average level of the “funding rate” across major exchanges has risen sharply from 0.023% to a five-month high of 0.087% in the past 48 hours, according to data source Glassnode.

“Rising funding rates have in the past been associated with a larger portion of the market utilizing leverage via perpetuals,” Matthew Dibb, CEO of Stack Funds,…


Source link

About bitcoin

Check Also

Bitcoin continues climb, breaking $61,000 in overnight trading

Check out what’s clicking on FoxBusiness.com. Bitcoin continued to climb overnight and was trading almost …

Leave a Reply

Your email address will not be published. Required fields are marked *