Bitcoin’s perpetual market shows cooling speculation

Bitcoin’s perpetual market has shown signs of cooling speculation, sparking concerns among investors about the future of the cryptocurrency. A recent drop to $93,000 sent shockwaves through the market, causing the long-side premium to plummet to -$158,000 per hour.

A Shift in Sentiment

The 7-day average fell by $181,000, indicating persistent pressure on the market. This trend mirrors the post-all-time high (ATH) weakness seen in April 2024, when funding also turned negative. According to data from Glassnode, this reflects a growing bearish sentiment among investors.

“Bitcoin’s perpetual market shows signs of cooling speculation, with a drop to $93,000 and a 7-day average fall of $181,000. Is this a sign of a growing bearish sentiment?”

The source indicated that the current market trend is similar to the one seen in April 2024, when Bitcoin’s price reached an all-time high. After the ATH, the market experienced a significant correction, with funding rates turning negative. This suggests that investors are becoming increasingly cautious, and the market may be due for a correction.

What’s Driving the Market?

So, what’s driving this shift in sentiment? The source explained that the recent drop in price has led to a decrease in investor confidence. As the price of Bitcoin falls, investors are becoming less willing to take on risk, leading to a decrease in speculation.

The source also revealed that the current market conditions are similar to those seen in previous bear markets. In the past, when funding rates turned negative, it often signaled a prolonged period of bearish sentiment. However, it’s essential to note that past trends do not always predict future outcomes.

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As the cryptocurrency market continues to evolve, it’s crucial for investors to stay informed and adapt to changing market conditions. With the current cooling of speculation, it’s essential to keep a close eye on market trends and adjust investment strategies accordingly. Will Bitcoin’s price continue to fall, or will it rebound? Only time will tell.

Bitcoin Speculation Cools Down: What’s Next for the Crypto Market?

Source: Glassnode | X.com

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