Bitcoin has been rejected as it approached $40,000 and has experienced a rise in volatility during today’s trading session. The first crypto by market cap trades at $37,400 with a 4.3% loss in 24-hours. Related Reading | Bitcoin Steadies At $37,000, But What Are Options Traders Doing? There has been a shift in market sentiment as Bitcoin attempts to bounce from a low near $33,000. A large portion of traders seem to have positioned themselves on the short side. On crypto exchange Binance, according to Jarvis Labs, funding rates for derivatives turned negative. However, they yet need to reach similar levels as in other downtrends. As the chart shows, funding rates on this platform are barely on negative territory while in June 2021, when Bitcoin hit a yearly low of $28,800, the metric stood higher. This suggests there is room for more downside and more a bigger bearish sentiment across the market. Bitcoin investors David Ellis has been tracking large BTC holders and their movements for some months. Ellis has found potential for more danger as most of these investors outload their funds with recent BTC price action. Although there has been some demand for Bitcoin from “Blue Whales”, the overall demand and address distribution seem to be hinting at low interest on the cryptocurrency. Most likely caused by the potential shift in central banks monetary policies, and investors preferring to leave capital on the sidelines. Ellis ...
