Funding rates show the same cooling. Funding is the fee that holders of long perpetual futures pay to shorts when demand for leverage runs hot. In late September, close to a quarter of altcoins paid more than the neutral rate. Fewer than 5% do now, near the bottom of the two-year range.

Note that open positions are only about 5% below their October peak at constant prices. With most of that leverage still open, a renewed rise in funding would be the first sign of fresh crowding.

#crypto #bitcoin #bitcoin #eth