blockchainreporter.net
The cryptocurrency market is witnessing a significant surge as and derivative contracts reach their highest funding rates since April 2021, according to the latest data from Velo Data. The funding rates for derivative contracts on major exchanges such as Binance, OKX, and Bybit have spiked, indicating heightened market activity and investor interest.
For BTC contracts, both Binance and OKX are reporting annualized funding rates over 85%, a level not seen since early April 2021. This suggests a substantial premium being paid for holding long positions over short. Even more striking are the funding rates for Ethereum contracts. Binance’s ETH contracts have surpassed an annualized rate of 110%, with OKX and Bybit not far behind, both exceeding 80%.
These rates reflect the current bullish sentiment in the market, as investors are willing to pay a premium for exposure to rising prices. This surge in funding rates is a critical indicator of market sentiment, suggesting that traders are highly optimistic about the future price movements of BTC and ETH. It also signals that the market could be entering a period of increased volatility as traders leverage their positions to capitalize on the anticipated price movements.
Crypto Market Goes Bullish
Bitcoin, the leading cryptocurrency, has seen a dramatic increase, crossing the $60,000 mark. The momentum is not slowing down as it currently stands at $62,742, marking a 5.88% increase in the last 24 hours. This rise in price is accompanied by a significant increase in trading volume, which has doubled, reaching $91.69 billion. Consequently, Bitcoin’s market capitalization has also risen by 5.88%, now valued at $1.23 trillion.
Parallel to Bitcoin’s impressive performance, Ethereum, the second-largest cryptocurrency by market cap, is also experiencing substantial growth. The price of ETH has increased to $3,462, up by 3.00% in the last 24 hours. Its trading volume has seen a notable increase of 95.80%, currently at approximately $37.06 billion. The market capitalization of Ethereum has followed suit, rising 3.05% to $415.83 billion.
The rise in cryptocurrency prices and derivative funding rates is a testament to the growing interest and confidence in digital assets. As the market continues to evolve, investors and traders are keenly watching these indicators to gauge the market’s direction and adjust their strategies accordingly. Overall, all eyes will be on these digital assets to see if they can maintain their momentum or if a correction is on the horizon.