In a rather amusing twist of fate, the esteemed on-chain analytics platform, Glassnode, recently took to the digital ether of X to share a rather sobering analysis. It appears that the hourly funding rates for the top five assets—Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and the ever-quirky Dogecoin (DOGE)—reveal a rather disheartening truth: the fervor for long positions has yet to return to the exuberant heights witnessed during that delightful rally of November to early December. One might say, the market’s appetite is akin to a cat on a diet—unenthusiastic and rather lackluster.
Funding rates, those fickle harbingers of market sentiment, serve as a crucial barometer for traders. High funding rates often suggest that traders are feeling bullish, perhaps even a tad overzealous, anticipating a price surge that could lead to a market so overheated it might just burst into flames. Conversely, low funding rates tend to whisper sweet nothings of bearish expectations, hinting that prices may be on a downward trajectory, much like a balloon losing air.
The hourly funding rates for the top 5 assets in the market ( $BTC, $ETH, $SOL, $XRP, $DOGE) show the appetite for long positions has not returned to the levels seen in the November to early December rally. This indicates a lack of aggressive demand:
— glassnode (@glassnode) January 27, 2025
According to the wise sages at Glassnode, the 168-hour moving average of funding rates reveals that all top assets, particularly Bitcoin, exhibited a glimmer of positive momentum early last week. Yet, poor Solana seems to be caught in a perpetual state of decline, as its funding rate regime has been on a steady diet of diminishing returns since December. One might wonder if Solana has taken up meditation, seeking inner peace amidst the chaos.
This apparent lack of aggressive demand for long positions suggests that traders are adopting a rather cautious demeanor, perhaps akin to a cat tiptoeing around a sleeping dog. The market may very well remain rangebound or experience mild pullbacks in the days to come, much to the chagrin of those hoping for a wild ride.
What Lies Ahead?
As the cryptocurrency market prepares for what promises to be a week of significant developments, investors are eagerly anticipating the Federal Reserve’s next meeting and the release of key inflation data. The markets are bracing for impact, much like a rollercoaster enthusiast before the first drop, as the Fed gears up to unveil its next monetary policy decision at the January meeting on Wednesday. And let us not forget the eagerly awaited inflation data set to be released on Friday, which will undoubtedly be scrutinized with the intensity of a hawk eyeing its prey.
Currently, the cryptocurrency market finds itself under a cloud of selling pressure, as investors hastily book profits ahead of this year’s inaugural Federal Open Market Committee meeting. At the time of this writing, Bitcoin has taken a tumble, down 3.83% in the last 24 hours, now resting at a modest $100,954 after dipping as low as $97,715 during today’s trading session. Meanwhile, Solana’s SOL and Dogecoin (DOGE) are down 8.46% and 10.46%, respectively, in the last 24 hours, while Ethereum (ETH) and XRP have also succumbed to losses of up to 6%. Ah, the joys of the crypto rollercoaster! 🎢
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2025-01-27 17:45