The annualized financing interest rate in the Bitcoin market continues to rise, with a surge in open positions and a growing interest in Bitcoin Whales, indicating that traders' behavior is constantly changing.The annualized financing interest rate of Bitcoin has reached a two-month high, affecting trading activity and volatility
The annualized financing interest rate in the Bitcoin market continues to rise, with a surge in open positions and a growing interest in Bitcoin Whales, indicating that traders' behavior is constantly changing.
- The annualized financing interest rate of Bitcoin has reached a two-month high, affecting trading activity and volatility.
- Whale interest has surged, and the MVRV ratio has decreased.
In the past few days, Bitcoin [BTC] has experienced a brief sharp decline, breaking the $27000 mark. Nevertheless, the general perception of cryptocurrencies is still positive.
Financing rate growth
A noteworthy development is the soaring annualized financing interest rate of Bitcoin, reaching a two-month high of over 7.5%. This ratio represents the cost of holding a Bitcoin position and affects the way traders enter the market.
The significant surge in this ratio may attract more traders to enter the market, thereby increasing trading activity. However, it also brings the possibility of increased volatility, as traders seek to leverage these financing rates.
At the same time, Bitcoin's open interest contracts have skyrocketed to a two-month high. The increase in open positions usually indicates an increasing level of market participation.
This may lead to a more liquid market, a wider diversity of traders, and a healthier overall situation. However, it can also exacerbate market volatility.
Trader Response
In addition, the put to call ratio of Bitcoin has changed from 0.5 to 0.46. This decrease indicates an increase in the market's tendency to be bullish in positions. This sentiment may affect their trading strategies, or it may indicate that the timing for market price increases is ripe.
In addition, Bitcoin's 25DeltaSkew has expanded in recent days. This bias is used to measure options traders' perception of potential significant price changes.
When this indicator rises, it usually indicates an increasing demand for protective options, indicating that traders have a certain degree of caution.
How does the holder persist
In addition, the number of Bitcoin addresses holding 1 or more BTCs has increased. These large investors, due to their large holdings of Bitcoin, can have a significant impact on the market dynamics of Bitcoin. This indicates the sustained interest of the main participants.
On the contrary, the market value to realized value (MVRV) ratio of Bitcoin has significantly decreased. This ratio represents the average profit or loss of Bitcoin holders.
The decline in MVRV may indicate that BTC holders with considerable profits are becoming fewer and fewer. Although this may alleviate short-term selling pressure, it may also indicate a decrease in market speculation.
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