Key takeaways:
Negative Bitcoin funding rates indicate bearishness, yet whales maintain steady long-to-short ratios at major exchanges.Inflation concerns and tech corporate earnings remain the biggest drivers for Bitcoin traders’ sentiment.
Bitcoin (BTC) faced rejection at $77,800 on Wednesday, then retested the $76,000 level. This movement followed a correction in the S&P 500 Index as the war in Iran reached its 60-day mark, driving crude oil prices toward $118. While demand for leveraged bearish Bitcoin futures positions increased, the long-to-short ratio of whales at major exchanges indicates a different trend.
S&P 500 Index futures (left) vs. Bitcoin/USD (right). Source: TradingView
Bitcoin’s lack of bullish momentum above $78,000 mirrors the S&P 500 Index’s struggle near 7,200. Trader skepticism stems in part from the inflationary impact of high energy prices, which diminishes consumer spending and corporate earnings through higher logistics costs. Additionally, investors are questioning the profitability of technology companies’ investments in AI, according to Yahoo Finance.
Bitcoin futures show bulls lacking confidence
Setting aside the specific reasons for investor caution, the Bitcoin perpetual futures funding rate turned negative on Wednesday. This followed a brief neutral-to-bullish period on Tuesday. In a healthy market, this rate usually stays between 6% and 12% to cover capital costs, which means buyers typically pay a fee to maintain their positions. A negative rate suggests a shift toward sellers.
Bitcoin perpetual futures annualized funding rate. Source: Laevitas
The Bitcoin perpetual futures funding rate has remained mostly negative over the past two weeks, indicating increased demand for leveraged short positions. While this data initially suggests a lack of confidence among buyers, a closer examination of whale positioning is necessary. The top traders’ long-to-short ratio across exchanges includes spot, margin, and futures data, offering a more comprehensive perspective.
Top traders’ long-to-short ratio and Binance and OKX. Source: Coinglass
The long-to-short ratio for professional traders…
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