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Bitcoin’s pullback from its all-time high price ($69K) has normalized the crypto perpetual futures market, which is supposed to cool down in the upcoming weeks.
Bitcoin (BTC), the big cheese of the crypto world showcased extraordinary performance last week, breaking its all-time high. On March 5, 2024, BTC hit its all-time high of $69,170.63. However, the cryptocurrency experienced a pullback of 10% from new record highs resulting in the normalization of the crypto funding rates.
How Bitcoin’s pullback influenced digital asset funding rates
March 5, 2024, has been etched in the BTC history as the day it marked its new ATH. The big cheese of the crypto market set a new milestone by hitting $69,170.63 as an all-time high value.
Overnight, BTC’s pulldown from its highest recorded value cleared out its excess leverage from the marketplace. Result of this, crypto funding rates in the perpetual futures market underwent normalization.
BTC value fell 10% to $59,700 which led to the forced windup of $1 Billion value of leveraged perpetual futures bets across crypto markets.
The annual funding rates or value of holding leveraged bets in perpetual futures reset to less than 20%, including the top 25 digital assets. It can be said that the outperforming perpetual futures market is shifting towards the south pole and has cooled.
According to Ledn’s chief investment officer, John Glover, the perpetual futures market is supposed to deleverage in the upcoming days which may result in BTC’s price standing back at $40K.
“I believe that we are back in that same situation and we will see a correction back to the mid-to-low $40,000 area in the coming weeks. Things always look bullish at the peak,” Glover added.
Moreover, BTC’s bullish behavior seeks the attention of many investors and encourages them to jump into the crypto market using leveraged products to maximize gains. Also, the funding rate approach is used by the crypto exchanges to keep the prices in line with spot prices.
The Velo Data chart indicates the current funding rates for the top 25 digital assets which showcased a positive to as high as 150% or more in the past week. Additionally, most of the cryptocurrencies are recorded below 20%.
Bitcoin: the standout performer
The price of Bitcoin at press time is $66,260.18, after a drop of 2.03% in 24 hours. BTC’s market cap of around $1,302,397,589,658 whereas the 24-hour volume was recorded at $105,726,572,256.
In the run-up to the 4th halving event, BTC price is skyrocketing and so are top altcoins including Ethereum, XRP, Cardano, Litecoin to name a few. BTC is even expected to hit the $100k mark around the time of halving. While the market is bullish, volatility is also high.
BTC, the big cheese of the crypto world recorded an all-time high of $69,170.63 on March 5, 2024, and an all-time low of $0.04865 on July 15, 2010. Additionally, Bitcoin has a maximum supply of 21 Million BTC and a circulating supply of 19,646,281 BTC.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
