The cryptocurrency market has been quite volatile lately, and the latest news reveals that the funding rates for Bitcoin and Ethereum have hit a 4 and 6-month low respectively. This is an interesting development for crypto enthusiasts and investors who have been keeping a close eye on the market.
On March 12, CryptoQuant, one of the leading on-chain data analytics providers, tweeted that Bitcoin funding rates had hit a 4-month low. The platform also reported that Ethereum funding rates had hit a 6-month low. This news has sparked some curiosity among market players who are wondering what could be causing this shift.
According to Crypto analyst Few, there has been a recent shift from USDC to BTC. This has led to a significant premium for Bitcoin on Coinbase, as the exchange combines USD and USDC order books. As a result, there has been a negative funding on perpetual contracts. While some believe this could be a short squeeze, there is currently no evidence to support this hypothesis.
Despite the market volatility and bank closures, Bitcoin has managed to rebound above $20,000. This is a remarkable feat for the world’s largest cryptocurrency, and it has left many wondering what the future holds.
The Shift from USDC to BTC
The shift from USDC to BTC has been an interesting development, and it has caused a significant premium for Bitcoin on Coinbase. This is because the exchange combines USD and USDC order books. As a result, there has been a negative funding on perpetual contracts.
While this could be seen as a short squeeze by some, there is currently no evidence to support this hypothesis. However, it is clear that the market is in a state of flux, and there are many different factors at play.
Bitcoin’s Resilience
Despite the market volatility and bank closures, Bitcoin has shown remarkable resilience. It has managed to rebound above $20,000, which is an impressive feat for the world’s largest cryptocurrency. This has left many wondering what the future holds for Bitcoin and the crypto market as a whole.
The recent drop in funding rates for Bitcoin and Ethereum has been an interesting development in the crypto market. While there is no clear evidence to support the hypothesis of a short squeeze, the shift from USDC to BTC has caused a significant premium for Bitcoin on Coinbase. Despite the market volatility and bank closures, Bitcoin has managed to rebound above $20,000, which is a testament to its resilience. As the crypto market continues to evolve, it will be interesting to see what the future holds for Bitcoin and other cryptocurrencies.
