©Reuters
NEW YORK – In cryptocurrency markets, a sense of stabilization is setting in, with funding rates having normalized following a recent rise. According to Coinglass, funding rates for the leading digital currency are now between 0.19% and 0.93%. The move comes amid bearish sentiment spreading across major cryptocurrencies including Ethereum, Solana, and XRP.
The market has seen $138 million in cumulative liquidations over the past 24 hours, indicating significant selling among traders. Despite these selloffs and the bearish mood that has gripped the market, the cryptocurrency is expected to maintain its positive trend after overcoming recent price volatility.
The funding rate is a critical indicator in the crypto derivatives market, representing the cost of holding bitcoin futures contracts. The normalization of these rates often indicates that traders are less inclined to take leveraged long positions, which can be interpreted as a cooling period after a price surge.
As the market adapts to these conditions, investors and traders are closely tracking bitcoin’s performance to gauge the health and direction of the cryptocurrency market as a whole.
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