Bitcoin

Bitcoin Futures Funding Rates Show Traders Still Bullish Despite Defeat

Published

7 months ago

19 June, 2024

Bitcoin startup Babylon raises $70 million to bring BTC staking to Ethereum and Solana

Despite the recent market rout, Bitcoin and Ethereum funding rates in perpetual futures contracts are still bullish, according to data from the CoinGlass.

Financing fees are periodic payments made between traders who are long (bullish) and short (bearish) on perpetual futures contracts. Unlike standard futures contracts, which have an expiration date, perpetual contracts do not have an expiration date. And so financing helps keep the price of a perpetual futures contract close to the spot price of its underlying asset.

When funding rates are positive, as they are at the time of writing, long traders pay a fee to short traders to keep their contracts open. As of Tuesday morning, Bitcoin open interest-weighted funding rates were 0.0024%, according to CoinGlass.

Why is this optimistic? It is an indicator that there are more traders opening long positions than short positions.

Therefore, current market sentiment – measured by Bitcoin derivatives activity – is still slightly more positive than negative. It is also a sign that traders holding long positions already open are confident that their gains will eventually outweigh their funding costs.

There are other signs that plunging prices have not completely erased bullish sentiment among Bitcoiners.

Philip Swift, founder of analytics platform Look Into Bitcoin, noted on twitter that BTC’s recent drop has dropped it to its 128-day moving average. It is a technical analysis metric that became popular during the 2017 bull runwhen the Bitcoin price often bounced back after touching the line, He explained.

If the BTC price were to follow the same pattern as then, then the 128DMA “usually, but not always, acts as good support in Bitcoin bull markets,” he wrote.

At the time of writing, Bitcoin was trading at just over $65,000 after falling to $64,548.57 – its lowest value in the past month.

There are other tepidly optimistic signals outside of the crypto markets as well.

Algorithmic crypto trading firm Wintermute recently highlighted in a note that the tide may be turning at the Federal Reserve, which is responsible for setting interest rates in the U.S.

Historically speaking, lower interest rates on Treasury bonds encourage traders to allocate more assets to riskier assets like stocks and cryptocurrencies.

This is why the market recently sank when new comments from Minneapolis Federal Reserve President Neel Kashkari indicated that the Fed might not cut rates until December. Until recently, investors held out hope for a rate cut in September.

But perhaps the Fed will give in to peer pressure from other major central banks, Wintermute argued.

“The current bearish sentiment may be short-lived as global central banks such as the Bank of Canada and the European Central Bank have already initiated rate cuts, suggesting a global shift towards monetary easing,” the firm wrote.

Fuente

Bitcoin

‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

'This is huge' — Billionaire Mark Cuban issues 'incredible' Bitcoin and crypto prediction amid price slump

Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.

Subscribe now to Forbes CryptoAsset and Blockchain Consultant and “discover blockchain blockbusters poised to generate 1,000%+ gains” after the bitcoin halving earthquake!

The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.

Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.

Sign up for free CryptoCodex now—A daily five-minute newsletter for traders, investors, and crypto curious people that will keep you up to date and ahead of the bitcoin and crypto bull market

ForbesElon Musk Suddenly Breaks His Silence On Bitcoin After Issuing Shocking Warning Of US Dollar “Doom” That Could Trigger Cryptocurrency Price BoomBy Billy Bambrough

Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.

Getty Images

The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.

“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.

“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”

John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”

Sign up for CryptoCodex now—A free daily newsletter for the crypto-curious

ForbesCryptocurrencies Are Suddenly Bracing For A ‘Very Major’ U-Turn In China After Wild Price Swings For Bitcoin, Ethereum, XRPBy Billy Bambrough

Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.

Forbes Digital Assets

Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.

According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”

The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.

Fuente

Bitcoin

MicroStrategy’s Cash Flow Amid Bitcoin Rally Raises Some Eyebrows

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

MicroStrategy’s Cash Flow Amid Bitcoin Rally Raises Some Eyebrows

Analysts are starting to pay more attention than usual to Bitcoin-proxy’s underlying enterprise software business MicroStrategy Inc.

How to better invest cash generated from operations is what originally prompted co-founder and CEO Michael Saylor to turn to Bitcoin four years ago. Since then, the Tysons Corner, Va.-based company has adopted a two-pronged strategy of investing in the cryptocurrency instead of traditional assets like short-term Treasuries and ramping up its software operations.

Fuente

Bitcoin

Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

Please note that our Privacy Policy, terms of use, cookiesIt is do not sell my personal information Has been updated.

CoinDesk is a awarded media outlet that covers the cryptocurrency industry. Its journalists follow a strict set of editorial policies. In November 2023, CoinDesk has been acquired by the Bullish group, owner of Optimistica regulated digital asset exchange. The Bullish Group is majority owned by Block.one; both companies have interests CoinDesk has a portfolio of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial board to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Fuente

Bitcoin

Bitcoin (BTC) Hits Six-Week High After Trump’s Pro-Crypto Speech

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Bitcoin (BTC) Hits Six-Week High After Trump’s Pro-Crypto Speech

Bitcoin has retreated from a six-week high as investors shift their focus to speculation the U.S. may sell seized tokens just days after Donald Trump vowed to create a government stockpile of the cryptocurrency if he is elected president again.

The US transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, blockchain research firm Arkham said in a publish on social media platform X. Market analysis firms have speculated that the tokens are from the Silk Road marketplace, where customers used virtual currencies to buy illegal drugs and hacking tools before it was shut down.

Fuente