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,…


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