Bitcoin and ether perpetual futures funding rates are still elevated despite the spot prices of each asset falling by 7% and 6% respectively, in the past 24 hours. The global cryptocurrency market cap fell 5.8% in the past 24 hours to $2.5 trillion, according to CoinGecko data.
“In spite of such a large spot move, perpetual funding rates are still 20-30% on the retail-focused exchanges. This means that speculators are still adding to leveraged longs on the dip,” Tuesday’s QCP Capital market report said.
Funding rates suggest more downside potential
However, QCP Captial analysts suggested that the elevated funding levels could indicate that the current price correction in the cryptocurrency market still has some way to go. “The forward curve is still surprisingly elevated. Even now, you can lock in a 23% risk-free yield on an ether April spot-forward spread. The desk is still seeing strong interest to sell these spreads. We…
