Futures Market Data
The Bitcoin futures market doesn’t show signs of overheating yet. The funding rate, which indicates the sentiment of derivatives traders, has stabilized at a relatively low level.
Historical Context
Historically, a high funding rate has been a bearish sign for Bitcoin. It suggests that the majority of traders are bullish, which often leads to a correction in the opposite direction.
Current Sentiment
The current funding rate is still positive, but it’s much lower than the levels seen during previous bull runs. The 7-day moving average of the funding rate is only 0.45%, compared to 3-4% in March.
Conclusion
So far, the futures market data doesn’t suggest that the current Bitcoin recovery is a dead-cat bounce. The funding rate hasn’t spiked despite the price rising above $68,000. However, it’s important to note that the market can change quickly, and it’s possible that the sentiment could turn bearish in the future.
