2 metrics signal traders do not expect $2T crypto market cap anytime soon

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Altcoins rallied over the past week, but traders are reluctant to add bullish crypto positions as measured by Asian $USDT demand and futures premiums, reports noshitcoins.

The OKX Tether premium is a good gauge of China-based retail trader crypto demand. It measures the difference between China-based peer-to-peer trades and the U.S. dollar.

Excessive buying demand tends to pressure the indicator above fair value at 100%, and during bearish markets, Tether's market offer is flooded, causing a 4% or higher discount.Currently, the Tether premium stands at 99.9%, its lowest level since March 3. While distant from retail panic selling, the indicator showed a modest deterioration over the past week.

Still, weaker retail demand is not worrisome as it partially reflects the total cryptocurrency capitalization, which is down 46% year-to-date.Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.

A positive funding rate indicates that longs demand more leverage. However, the opposite situation occurs when shorts require additional leverage, causing the funding rate to turn negative.As depicted above, the accumulated seven-day funding rate is slightly positive for Bitcoin and Ether. This data indicates slightly higher demand from longs , but it is insignificant. For example, Solana's positive 0.20% weekly rate equals 0.

 

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