Bitcoin Weekly Funding Rate Indicates Caution Among Investors

Bitcoin is currently trading above $63,000, but the futures weekly funding rate is showing that professional traders are exercising caution.

• Bitcoin price surged 9.7% from July 13 to July 15, reaching around $63,500. However, the $65,000 resistance level has remained unbroken for four weeks.
• BTC derivatives markets are not reflecting the same optimism despite recent positive developments surrounding Bitcoin.
• Analysts believe that China is unlikely to permit trading Bitcoin freely using the local Renminbi currency, as it goes against the government’s agenda to control capital flow.

Bitcoin Derivatives Markets Analysis

Despite the positive sentiment around Bitcoin, the derivatives market is not as optimistic. Investors are questioning whether demand is strong enough to push past the $65,000 barrier and maintain recent gains.

Bitcoin’s weekend gains are seen as a potential indicator of a higher likelihood of former President Trump being re-elected. Analysts suggest that Trump’s possible return to office could lead to more favorable cryptocurrency regulations compared to the current administration.

Analysis of Futures Funding Rate

The perpetual futures funding rate currently stands at 0.005% per 8 hours, indicating a lack of significant bullish sentiment. This rate is substantially lower than levels typically associated with bullish markets.

Investors’ cautious stance on Bitcoin could potentially lead to a surprise rally if the $65,000 level is broken, triggering forced liquidation of short positions and driving price gains.

This article does not provide investment advice. Investors are advised to conduct their own research before making any financial decisions.