People are willing to pay for the opportunity ...

People are willing to pay for the opportunity to sell bitcoin futures

  • Futures traders pay high annual interest rates on short positions.

  • However, exchanges are still dominated by long margin positions with BTC.

  • Futures traders pay high annual interest rates on short positions.

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A bearish trend has formed in the BTC futures markets. Some traders are willing to pay high interest rates on a price cut.

People are willing to pay for the opportunity ...

While Bitcoin Futures Are Soaring Down, Traders Still Don’t Know What To Expect.

High interest rates

Indicators in the BTC futures markets do not bode well as traders are willing to pay higher interest rates for short positions. According to CL (@ CL207), people pay 6.5% per annum to sell BTC on futures exchanges.

atm, people are paying 6.5% APR $$$ interest to short BTC on futures.

– CL (@ CL207) April 13, 2020

However, some traders took this as the opposite signal. In their opinion, this is an opportunity to open margin longs. Indeed, this is what most market participants seem to be doing. For example, currently, most BTC margin traders on Bitfinex are long (64%). A similar situation is observed on BitMEX.

People are willing to pay for the opportunity ...

However, it should be noted that it is difficult to assess the market in terms of long and short positions – lately, long margin positions with Ethereum have reached impressive levels, from which the market soon slid..

Uncertain short-term prospects

It is difficult to draw conclusions about future market dynamics based on futures markets or long and short marginal positions as the macroeconomic situation remains uncertain despite the rally in financial markets in the short term.

In the past two months, Bitcoin has generally followed the S index&P 500. This means that in the future, price action will be less related to bitcoin and more to the larger financial markets. At the moment, macroeconomic indicators remain highly uncertain: the WTO expects global trade to contract by 32% this year, and the IMF predicts a deep recession.

Considering all this, the upcoming halving will be different from others. Bitcoin’s Relative Strength Index has never been so weak ahead of the halving. As some analysts warn, the current “recession” is different from the rest because the world is in a unique situation..

At the time of writing, bitcoin is down roughly -2.63% and is currently trading just above $ 6,700.


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