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Crypto Traders Lever Up as Bitcoin Creeps Back Toward All-Time High


 Bitcoin traders appear to be ratcheting up bets on a fresh rally, and they’re taking on more leverage – and risk – in cryptocurrency derivatives markets.

In the past few days, the cost to fund a long position in the market for bitcoin (BTC) perpetual swaps, a type of derivatives in cryptocurrency markets similar to futures contracts in traditional markets, has broken above neutral levels for the first time since mid-March, according to Arcane Research, a Norwegian analysis firm.

The average cost is now pushing toward 0.08%. That’s still well below a level close to 0.12% witnessed earlier this month, when bitcoin surged to an all-time high price above $61,000, or earlier in the year, when the funding cost was roughly twice as high.

But the recent rise appears to show traders finding a renewed appetite for risk-taking following a market shakeout over the past couple weeks. Bitcoin’s price fell to just above $50,000 as recently as March 25.

“The funding rate spikes coincide with strong optimism and high leverage from short-term traders,” according to the Arcane report.

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