A look at Bitcoin’s rally to $63K and the effect on market demand

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Bitcoin’s [BTC] brief rally above $63,000 has led to a spike in its funding rates on derivatives exchanges like DyDx and Deribit.

brief rally above $63,000 has led to a spike in its Funding Rates on derivatives exchanges like DyDx and Deribit, Santiment noted in a post on X .According to the on-chain data provider, as of the 13th of May, BTC’s Funding Rates on DyDx and Deribit were 0.0012% and 0.037%, respectively.

Funding Rates are used in perpetual futures contracts to ensure that the contract price stays close to the spot price. Conversely, negative Funding Rates suggest a high demand for short positions. This is a bearish signal that shows market participants are betting against an asset’s price.While its Funding Rates have risen, BTC’s Futures Open Interest has oscillated between $29 billion and $30 billion since the beginning of May, according to

When it oscillates in a narrow range like this, traders are not aggressively adding or exiting their positions.An assessment of BTC’s volatility markers on a daily chart confirmed this.

 

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