• Home
  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • DeFi
  • Dogecoin
  • Ethereum
  • Market & Analysis
  • More
    • NFTs
    • XRP
    • Regulations
  • Shop
    • Bitcoin Coin
    • Bitcoin Hat
    • Bitcoin Book
    • Bitcoin Miner
    • Bitcoin Standard
    • Bitcoin Miner Machine
    • Bitcoin Merch
    • Bitcoin Wallet
    • Bitcoin Shirt
No Result
View All Result
Card Bitcoin
Shop
Card Bitcoin
No Result
View All Result
Home Bitcoin

Bitcoin: How a surge on this front could be ‘dangerous’ for BTC

n70products by n70products
March 17, 2024
in Bitcoin
0
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


  • Bitcoin perpetual swaps funding charges have rallied to multi-year highs on Binance and Bybit.
  • The Crypto Concern & Greed Index confirmed that the market is in a state of maximum greed.

Bitcoin [BTC] borrowing prices on main cryptocurrency exchanges like Binance and Bybit have reached their highest level since 2021, IntoTheBlock famous in a recent post on X (previously Twitter). This means a surge in leveraged buying and selling.

In keeping with the on-chain knowledge supplier, on 14th March, BTC perpetual swaps funding charges on Binance and Bybit recorded highs of  0.06% and 0.09%, respectively. 

Excessive Leverage equals excessive funding charges 

Perpetual swaps are a sort of by-product contract that permits merchants to take a position on the worth of an asset with out truly proudly owning it.

The funding charge is a payment exchanged between merchants to make sure that the worth of the perpetual contract stays near the spot value of the underlying asset. 

When an asset’s funding charges surge, as on this case with BTC, it means that there’s an unusually excessive demand for lengthy positions in comparison with quick positions. This means that extra merchants are betting on the worth of BTC growing than these betting on it lowering. 

Though this generally signifies the presence of serious bullish sentiment available in the market, the quantity of trades executed utilizing excessive leverage additionally implies that the market is overheating. 

Excessive-leverage buying and selling typically displays market sentiment. If merchants are extremely bullish and are utilizing leverage to open lengthy positions, this sentiment can drive up the funding charges. 


 How a lot are 1,10,100 BTCs worth at the moment?


Nevertheless, an unabated rally in BTC’s funding charges poses sure dangers. As per the findings shared by a pseudonymous CryptoQuant analyst  in a report dated sixth March, the analyst emphasised the results of a surge within the funding charges of an asset.

“Nevertheless, whereas rising funding charges sometimes accompany a bullish market sentiment, excessively excessive values will be harmful. Elevated charges improve the danger of lengthy liquidation cascades, which can end in heightened market volatility and sudden corrective actions.”

Furthermore, this surge in funding charges comes at a time when the market is overly “grasping.” As of this writing, the Crypto Fear & Greed Index is 81, indicating that the market remained in a state of maximum greed. 

A market pushed by excessive greed is commonly vulnerable to sudden reversals, as sentiments can shift shortly. Destructive information or a change in market dynamics may set off a sell-off as buyers rush to chop their losses, resulting in a market correction.

At press time, BTC exchanged fingers at $69,000, per CoinMarketCap’s knowledge. 

Earlier: Solana is up 13% in 24 hours – Here are the reasons why
Subsequent: Will XRP’s price see another 8% drop? New predictions suggest…





Source link

Tags: BitcoinBTCdangerousfrontSurge
Previous Post

Metaverse minus the headset: A deeper look at Lenovo’s Project Chronos

Next Post

Getting started with Kafka client metrics

Next Post

Getting started with Kafka client metrics

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Product categories

  • Bitcoin Book
  • Bitcoin Coin
  • Bitcoin Hat
  • Bitcoin Merch
  • Bitcoin Miner
  • Bitcoin Miner Machine
  • Bitcoin Shirt
  • Bitcoin Standard
  • Bitcoin Wallet
  • Products
  • Uncategorized

Related News

Ethereum Price Falls Below ,800 Despite Ending Its Spot ETF Outflow Streak

Ethereum Price Falls Below $1,800 Despite Ending Its Spot ETF Outflow Streak

April 1, 2025
12 Best No KYC Crypto Exchanges | Trade Without KYC (2025)

12 Best No KYC Crypto Exchanges | Trade Without KYC (2025)

January 26, 2025
Devcon Tickets: Wave 3 and beyond

Devcon Tickets: Wave 3 and beyond

April 5, 2025

Recents

Vatican Bank Denies Ties to Scam Project Promoting Fake Crypto Token

Vatican Bank Denies Ties to Scam Project Promoting Fake Crypto Token

July 11, 2025
Bitcoin Soared—But Mainstream News Was Missing In Action, Study Reveals

Bitcoin Soared—But Mainstream News Was Missing In Action, Study Reveals

July 11, 2025
SEC Commissioner Peirce Declares Tokenized Securities Under the Purview of the Regulator

SEC Commissioner Peirce Declares Tokenized Securities Under the Purview of the Regulator

July 11, 2025

CATEGORIES

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • DeFi
  • Dogecoin
  • Ethereum
  • Market & Analysis
  • NFTs
  • Regulations
  • XRP

BROWSE BY TAG

Altcoin ALTCOINS Analyst Binance Bitcoin Bitcoins Blog Breakout BTC Bullish Bulls Coinbase Crash Crypto DOGE Dogecoin ETF ETH Ethereum Foundation Heres high Key Level Major Market Memecoin Move Outlook Predicts Price Rally Report Ripple SEC Solana Support Surge Target Top Trader Trump Updates Whales XRP

© 2024 Card Bitcoin | All Rights Reserved

No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • DeFi
  • Dogecoin
  • Ethereum
  • Market & Analysis
  • More
    • NFTs
    • XRP
    • Regulations
  • Shop
    • Bitcoin Coin
    • Bitcoin Hat
    • Bitcoin Book
    • Bitcoin Miner
    • Bitcoin Standard
    • Bitcoin Miner Machine
    • Bitcoin Merch
    • Bitcoin Wallet
    • Bitcoin Shirt

© 2024 Card Bitcoin | All Rights Reserved

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Go to mobile version