naomi
@nkg
According to Bloomberg, Bitcoin has fallen after hitting a historic high, and some traders are seeking to hedge against deeper pullback risks. Funding rates are a key indicator of leverage in the cryptocurrency market and are currently approaching historical highs. This data indicates that traders are willing to pay high premiums to increase the leverage of their long bets, and perpetual contracts are one of the most commonly used products for investors to double their bets on the directional trend of Bitcoin prices. As demonstrated by previous bull markets, high funding rates may lay the groundwork for a correction. Natana ë l Cohen, co-founder of digital asset hedge fund INDIGOFund, said that the funding rate is a good way to judge the degree of market overheating, but it can also be very dangerous because it may remain high for longer than expected. @gpiriou
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