Why Trapped Longs At Bitcoin ATH Could Lead To More Downside

Bitcoin’s new all-time high this month has led to a number of interesting developments in the crypto space. The success of the first Bitcoin ETF contributed greatly to the price of BTC finally bursting through the $67K price point and with it has come to a spike in funding rates in the market. The ProShares ETF saw over $1 billion in trading volume in its first day, signaling increased inflows into the market. The spike in funding rates moved along with the price movements of BTC in the month of October. This spike maintained momentum along with BTC movements. However, as the price of bitcoin has begun a downward trend, funding rates have also evened out to mid-October levels. Bitcoin Open Interest Spikes Open interest in bitcoin had recorded a significant spike when the price of the digital asset had moved past $67K. BTC-denominated open interest in perpetuals had since a sharp increase to the tune of 15,000 when the asset reached its new all-time high in October. The spike in BTC-dominated perpetuals had risen past levels recorded during the April all-time high. Related Reading | Brace For Impact: Wall Street Is Headed Straight For Bitcoin, Says Analyst The increased interest from big money is credited for the spike in the funding rates recorded last week. More specifically short-term traders expected the value of the digital asset to continue to grow and break past $70K. Funding rates have shown similar movements...