Good morning Here’s what happens:
Prices: Bitcoin was stable around $27,300.
Insights: Funding rates for bitcoin and ether perpetual futures, often indicative of sentiment, remain positive.
A quiet market leads to less bullish energy
As CoinDesk market analyst Glenn Williams Jr. wrote, trading volumes will be key as they could add or dampen the sentiment behind any directional move.
According to Jeff Dorman, chief investment officer at digital asset manager Arca, so-called bid-ask spreads — the difference between what a buyer is willing to pay and what a seller will accept — are wide, especially according to some market makers no more crypto.
“The prices of most digital assets are stuck in a wind tunnel,” Dorman said in a newsletter.
In traditional finance, activity was subdued as traders try to dim the chances that US lawmakers can agree on a plan to avoid a federal government default, with Treasury Department borrowing nearing the official ceiling.
Funding rates in the crypto markets remain positive
Funding rates for perpetual futures remain positive for both bitcoin and ether, a sign that market sentiment remains upbeat for now.
Perpetual funding rates represent payments within the futures markets between participants who hold the asset long or short. With positive funding rates, long position holders pay a fee to short position holders. The opposite is true for negative funding rates.
The interpretation is that financing rates can often indicate bullish or bearish sentiment, with the former being represented by positive interest rates and the latter by negative interest rates.
Bitcoin funding rates have been positive for 8 of the last 10 trading days. In comparison, Ether has shown positive funding rates over the past seven days, dipping to zero three times, but has not dipped below zero since April 6th.
Bitcoin (BTC) traded above $27,000 and has recovered some ground after last week’s crash. This comes as crypto exchange Binance announced it was ceasing operations in Canada, citing the difficult regulatory environment. Dunleavy Investment Research crypto strategist Tom Dunleavy shared his market analysis. Separately, Paul Brody, head of blockchain technology at EY Global, discussed the professional services giant launching an Ethereum-based platform for businesses to track their carbon emissions and traceability of carbon credits. Christoph Jentzsch, CEO of corpus.ventures and Slock.it founder, also took part in the discussion.
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