Crypto traders are picking up as Bitcoin creeps back to its all-time high

Bitcoin traders seem to be winning bets on a new rally, and they are taking on more leverage – and risk – in the cryptocurrency derivatives markets.

In the past few days, the cost of financing a long position in the market for Bitcoin (BTC) perpetual swaps, a type of derivative in cryptocurrency markets, similar to futures contracts in traditional markets, has fallen above neutral levels for the first time since mid -March, according to Arcane Research, a Norwegian analysis company.

The average cost is now increasing towards 0.08%. This is still well below a nearly 0.12% level seen earlier this month when Bitcoin soared to an all-time high of over $ 61,000, or earlier in the year when funding costs were roughly double that.

However, the recent surge seems to indicate that traders are regaining an appetite for risk taking after a market adjustment in recent weeks. Bitcoin’s price only fell to just over $ 50,000 on March 25.

“The funding spikes coincide with strong optimism and high leverage from short-term traders,” the Arcane report said.

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