Posted 12/11/2023, 6:02:00 AM
Bitcoin Drops 4% to $42K, Cooling Futures Market and Clearing Path for More Stable Growth
- Bitcoin fell 4% to $42,000, cooling overheated futures market and clearing way for steadier ascent
- Funding rates are payments between long and short position holders to keep positions open
- High funding rates (over 0.10%) signal excess bullish leverage and overcrowding
- Funding rates have dropped below 0.1% for most coins after price drop shook out overleveraged bulls
- Open interest declined across top 25 cryptos, confirming overleveraged traders exited market