New York, USA – Bitcoin’s funding rate, which has remained low since mid-May, suggests low investor expectations but could potentially benefit Bitcoin’s price. The funding rate, indicating the cost of holding an open contract in the market, has been positive, signaling that the perp price is trading above the index value. However, the current reading of $0.01% is lower than previous weeks, potentially indicating a decline in perp buyers supporting Bitcoin’s movement.
Despite the positive funding rate, the Coinbase Premium Index, showing the difference between BTC’s price on Coinbase and other exchanges, remains a concern. A decline in the index suggests increased selling pressure from U.S. investors, with the current value at -0.10 indicating intense selling pressure on Bitcoin.
Analysts suggest that if the Coinbase Premium Index increases, it could trigger a breakout for Bitcoin. Additionally, investor capitalization metrics by Glassnode indicate that Bitcoin is in a critical area, with the potential for a price correction if the metric rises above BTC’s price.
While the possibility of a price increase to retest $70,000 remains, Bitcoin’s volatility is currently low, suggesting a tight range for the price movement. Despite this, there is optimism that the metrics could turn positive, possibly leading to an attempt to surpass Bitcoin’s all-time high before the end of June.
Overall, market analysts are closely monitoring these key indicators to gauge Bitcoin’s next move, with a focus on the funding rate, Coinbase Premium Index, and investor capitalization metrics to understand the potential price trajectory in the coming weeks.