Are Derivatives Overheated? Bitcoin Funding Rates Begin Inching Up

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Bitcoin has undergone a strong rally higher over the past week, reaching highs of $13,250. Looking at derivatives trends, one analyst recently postulated that Bitcoin’s price action may be overheated. The aggregated open interest and CVD of BTC futures markets are meeting notable resistances, he noted. Bitcoin May Be Overheated, Analyst Fears as Funding Rate Moves Higher Bitcoin has undergone a strong rally higher over the past week. The leading cryptocurrency has shot from $11,200, the lows of last week, to $13,150 as of this article’s writing. That is a gain of 17.5% in the span of ten days. Many noted that this move was predicated on spot market volumes on exchanges like Coinbase. Many see spot-led rallies as bullish as it indicates the arrival of institutional money or a mass amount of retail capital, or even a mix of both. But as the rally has petered out in the…

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