Extreme fear at 25/100 and funding at 0.0015%: the market is afraid, but it isn’t leveraged
The Fear and Greed Index fell from 50 (neutral) to 25 (extreme fear) in two days. Sentiment plunged. But the money tells a different story.
The funding rate for Binance perpetual futures at $BTC is 0.0015% every 8 hours: longs are paying almost nothing to hold their positions. And open interest remains at 96,416 BTC, or around US$7.3 billion.
When there’s real capitulation, funding turns negative and open interest plunges. Neither happened today.
One thing to keep in mind: that doesn’t guarantee a rebound. On November 4, shorts were liquidated for US$378 million in one hour, and BTC reached 81,000; the next day, it gave it all back.
A weekend fact: Saturday averages a 0.74% move, compared with 2.05% on Monday. With half the liquidity, any large order exaggerates the move. Don’t confuse noise with a trend.
Real fear, or a pause before 70,000?
#Bitcoin #Cripto #BinanceSquare
This is not financial advice. Do your own research before investing.
The Fear and Greed Index fell from 50 (neutral) to 25 (extreme fear) in two days. Sentiment plunged. But the money tells a different story.
The funding rate for Binance perpetual futures at $BTC is 0.0015% every 8 hours: longs are paying almost nothing to hold their positions. And open interest remains at 96,416 BTC, or around US$7.3 billion.
When there’s real capitulation, funding turns negative and open interest plunges. Neither happened today.
One thing to keep in mind: that doesn’t guarantee a rebound. On November 4, shorts were liquidated for US$378 million in one hour, and BTC reached 81,000; the next day, it gave it all back.
A weekend fact: Saturday averages a 0.74% move, compared with 2.05% on Monday. With half the liquidity, any large order exaggerates the move. Don’t confuse noise with a trend.
Real fear, or a pause before 70,000?
#Bitcoin #Cripto #BinanceSquare
This is not financial advice. Do your own research before investing.
