Analyzing Bitcoin’s [BTC] unprecedented rally and market reaction

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BTC has experienced an unprecedented rally, with the crypto market following suit to a large extent. Traders’ reactions have, however, been mixed, with rising negative sentiment and modest improvements in funding rates. Bitcoin [BTC] has been on an unprecedented upward trajectory recently, and the entire crypto market has followed suit, or at least to a […]

, respectively, caused the previous crashes. High negative funding rates are often an indication of a short squeeze.

Spot purchasing prompted initial price drops before the futures market stepped in with intensity in all three cases. The current rate is positive but modest, suggesting market neutrality with a minor preponderance of optimism among traders of these perpetual contracts.CoinMarketCap’s data also indicated an uptick in the cryptocurrency market. The overall value of all cryptocurrencies dropped at the beginning of March due to the downward price trend.

 

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