Bitcoin pushes up after weekend plunge

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Bitcoin rebounded on Monday after seeing prices drop below $ 60,000 over the weekend, down from the all-time high of nearly $ 67,000 reached last week.

At the time of going to press, the cryptocurrency was up 4% in the past 24 hours, trading around $ 62,900.

The drop in funding rates is the most notable indicator seen over the weekend, according to Matthew Dibb, chief operating officer at Stack Funds.

“It’s extremely bullish given where we are at,” Dibb said.

Funding rates on major exchanges were lower over the weekend, which allowed traders to leverage longer on bitcoin. Funding rates are payments to long or short traders based on the difference between the perpetual contract market and the current price, according to the Binance crypto exchange.

When finance rates fall, this is usually a sign that there is less demand from traders for leverage (borrowed funds) to bet on price gains – an indication that the market is getting less. overheated. The lower funding rates also make it less expensive for traders to put on new leveraged positions.

Dibb said he sees the rally continuing from here and the recent pullback is needed to cool speculators.

Bitcoin is still down 6% from its all-time high reached last week on October 20, at $ 66,974.77.

VanEck Bitcoin Futures ETF

Contrary to Dibb’s bullish stance, Laurent Kssis, director of CEC Capital, an independent crypto financial services firm, believes a downtrend is more likely around the $ 50,000 channel before the market begins to sell again. ‘appreciate.

The price hike precedes the scheduled launch on Monday of VanEck’s third bitcoin futures exchange-traded fund (ETF), which will trade under the ticker symbol XBTF.

ProShares was the first to gain long-awaited approval for a bitcoin futures ETF by the United States Securities and Exchange Commission (SEC) and began trading last week. Another bitcoin futures ETF, from Valkyrie Investments, launched on Friday.

Alternative cryptocurrencies such as Ether (ETH), Solana (SOL) and Cardano are all up between 1% and 11% on the day.

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