$BTC rose from $60,000 to $87,000, but one thing hasn’t moved as many expected
Funding rates have remained relatively low despite this rally
If Bitcoin rises sharply while funding rates remain low, it could mean that the rally wasn’t accompanied by a major surge in leveraged buying
Imagine it’s like a train picking up speed while many people are still hesitant to board it
Bottom line: The price tells you what happened, and funding rates help you understand how crowded leveraged trading positions are
Usually, when traders crowd into leveraged long positions, funding rates rise and optimism becomes expensive
But this rally is less crowded than the market thinks
Bitcoin is rising while most traders are still hesitant
There’s a difference between a buyer-led rally and one that most of the market doesn’t trust
Don’t just watch the price. Watch how traders are behaving around it
Funding rates have remained relatively low despite this rally
If Bitcoin rises sharply while funding rates remain low, it could mean that the rally wasn’t accompanied by a major surge in leveraged buying
Imagine it’s like a train picking up speed while many people are still hesitant to board it
Bottom line: The price tells you what happened, and funding rates help you understand how crowded leveraged trading positions are
Usually, when traders crowd into leveraged long positions, funding rates rise and optimism becomes expensive
But this rally is less crowded than the market thinks
Bitcoin is rising while most traders are still hesitant
There’s a difference between a buyer-led rally and one that most of the market doesn’t trust
Don’t just watch the price. Watch how traders are behaving around it