ChainCatcher news, according to market data, as Bitcoin fell to $94,000, altcoins experienced a widespread "spike" in extreme market conditions, including:Ethereum hit a low of $3,509, currently priced at $3,706, with a 24-hour decline of 7.15%SOL hit a low of $203, currently priced at $218, with a 24-hour decline of 7.35%SAGA hit a low of $1.8 before spiking up to $2.67, currently priced at $2.09, with a 24-hour decline of 24%1INCH hit a low of $0.4, currently priced at $0.477, with a 24-hour decline of 23.6%ORCA hit a low of $4.03, currently priced at $4.72, with a 24-hour decline of 23.5%CATI hit a low of $0.4, currently priced at $0.46, with a 24-hour decline of 23.3%HMSTR hit a low of $0.0028, currently priced at $0.00349, with a 24-hour decline of 23%NOT hit a low of $0.00615, currently priced at $0.0076, with a 24-hour decline of 22.48%Additionally, according to Coinglass data, after this extreme spike in the market, the funding rates for mainstream CEX contracts have all "cooled down," currently returning to normal levels, with the majority of altcoin contract funding rates dropping below 0.005%, entering a "generally bearish" level. Some altcoin contract rates on certain CEXs have even shown negative rates.

ChainCatcher news, according to Bloomberg, Bitcoin has retreated after reaching an all-time high, and some traders are seeking to hedge against deeper pullback risks. The funding rate is a key indicator of leverage in the cryptocurrency market and is currently approaching historical highs.This data indicates that traders are willing to pay a high premium to increase the leverage of their long positions, and perpetual contracts are one of the most commonly used products for investors to double down on the directional movement of Bitcoin prices. As past bull markets have shown, elevated funding rates may foreshadow a pullback.Nathanaël Cohen, co-founder of the digital asset hedge fund INDIGO Fund, stated that the funding rate is a good way to gauge how overheated the market is, but it can also be very dangerous, as it may remain elevated for longer than expected.

ChainCatcher message shows that, according to SoSoValue data, the Bitcoin funding rate briefly exceeded an annualized 100%, and has now fallen back to 79.33%. Meanwhile, the Fear and Greed Index (FGI) has reached 84, indicating that the market is in a state of extreme greed.Note: The Bitcoin funding fee is based on the difference between the perpetual contract price and the spot price, and is a fee paid periodically to long or short traders. The annualized funding rate is calculated from the Binance real-time funding rate, which is the funding rate every 8 hours x 3 x 365.

ChainCatcher news, asset management giant VanEck's latest report indicates that, from key indicators, this round of rebound seems to have just begun. VanEck analyzed three key indicators: funding rates, relative unrealized profits (RUP), and retail interest trends:Since November 12, the perpetual futures funding rate has remained above 10%, indicating a strengthening bullish momentum;Additionally, the current 30-day moving average of relative unrealized profit levels is about 0.54, which typically suggests that the market will peak over a longer cycle;The search term popularity is only 34% of the peak in May 2021, indicating that speculative frenzy has not yet spread, and the re-engagement of retail investors will provide further upside potential for Bitcoin.

ChainCatcher message, IntoTheBlock data shows that the funding rate for perpetual swap contracts has soared to over 10%, with some major exchanges even reaching 20%.Such high costs indicate that traders' bullish sentiment is on the rise, and although it is still below the peak in the first quarter, sustained demand may suggest overheating speculation.

ChainCatcher news, Ethena founder Guy Young stated that under the current market conditions, bulls need to pay a funding rate of 66 million dollars every day.

ChainCatcher news, Matrixport released its daily chart, indicating that the Bitcoin funding rate has soared to 37%, reaching its highest level since March 2024, reflecting a general bullish sentiment in the market. The futures open interest has also significantly increased from $16 billion in September to $28 billion.Given that Trump's inauguration will take place on January 20, 2025, the market has ample time to maintain this bullish momentum. Matrixport predicted a year-end target of $100,000 in its October report "Matrix on Target," and this milestone may be achieved ahead of schedule.

ChainCatcher news, according to Matrixport's latest report, the funding rate for Ethereum perpetual futures has surged to an annualized 18%+, reaching its highest level since May 2024.This indicates a shift in market sentiment, with traders heavily going long on ETH ahead of the U.S. presidential election. After the price fell from $3,800 to $2,500, traders are now buying ETH at more attractive prices.Additionally, BlackRock CEO Larry Fink hinted that the role of Ethereum's blockchain could significantly increase, reflecting a shift in market focus. BlackRock is currently not only focused on Bitcoin but also views Ethereum as an important alternative digital asset.

ChainCatcher news, Matrixport released a chart stating that although Bitcoin has a natural volatility, its funding rate has returned to nearly zero levels, indicating that even in the recent Bitcoin rebound, the futures market's long positions are not heavily leveraged. This provides an opportunity for traders to increase long positions, which may further drive up prices.However, the low funding rate also suggests that the recent rise may have been driven by spot buying, which is often more strategic and long-term rather than speculative futures trading. Overall, this is a positive signal, indicating that the market is not overly leveraged and still has potential for future increases.

ChainCatcher news indicates that Ethereum derivatives market indicators show that investor sentiment is becoming optimistic. CryptoQuant's research director Julio Moreno stated that the 30-day moving average of the funding rate has turned positive, suggesting that futures traders' bullish sentiment is strengthening.Moreno pointed out that this upward trend follows a long-term decline, indicating that market participants may be turning more optimistic.Coinglass data shows that since the Federal Reserve cut interest rates on September 18, the open interest weighted funding rate for Ethereum has been on a positive trend, currently at 0.0089%. QCP Capital analysts also noted an improvement in funding rates on major exchanges, believing this is related to the recent rate cuts. Since the Federal Reserve lowered the federal funds rate by 50 basis points on September 18, the price of Ether has increased by over 17%, outperforming Bitcoin's 10% increase during the same period.

ChainCatcher message, QCP released its daily outlook stating that Harris winning this election may not be as bearish as the market thinks. To win the votes of cryptocurrency users, Harris promised at a fundraising event last weekend to help the cryptocurrency industry develop.This is another move following Anthony Scaramucci and other cryptocurrency supporters formulating crypto policies for her campaign. Harris's apparent shift towards a pro-crypto stance, combined with favorable macroeconomic factors, has set a positive tone for the crypto market this week, triggering nearly $60 million in short liquidations.Last week, QCP mentioned that Bitcoin could rise 13.8% from a low of $57,500. Since last Monday, Bitcoin has rebounded nearly 12% and still seems to have further upward momentum. The front-end put skew that has been visible over the past month is starting to normalize, as more high-position buyers and low-position sellers enter the market over the weekend. Even the funding rates on major trading platforms are improving, and the basis yield has become relatively more attractive as interest rates decline.

ChainCatcher message, Matrixport released a chart stating that although Bitcoin rebounded by 10% in the past week, the funding rate has turned negative, indicating that this rally is primarily driven by buying in the spot market rather than leveraged trading in the futures market.If prices continue to rise, futures traders may turn bullish, pushing the funding rate back to positive, which could further drive up prices. Currently, it seems that short-term futures traders are not yet prepared for a market breakout, but the steady increase in spot buying may force them to change their stance and turn bullish.

ChainCatcher news, K33 Research analysts indicate that as the correlation between Bitcoin and the S&P 500 index reaches a 23-month high of 0.67, the cryptocurrency market will be significantly influenced by the CPI release on Wednesday and the FOMC meeting on September 18, when the Federal Reserve will make its highly anticipated latest interest rate decision. However, the ongoing bearish sentiment has pushed the average daily funding rate in the perpetual contract market to its lowest level since March 2023.Analysts point out, "This is the seventh time since 2018 that the 30-day average funding rate has hit negative levels. This provides a compelling reason for a positive price trend in the coming months." According to K33's data, since 2018, after the 30-day average return turned negative, the 90-day average return was 79%, with a median 90-day return of 55%.

ChainCatcher news, K33 Research stated in a market report released on Tuesday that a reliable indicator suggests a significant rebound in the coming weeks and months. According to the report, the 30-day average funding rate for perpetual contracts has dropped to negative levels, a phenomenon that has only occurred six times since 2018.K33 analysts Vetle Lunde and David Zimmerman wrote, "Historically, when the monthly funding rate falls to negative, it usually indicates a market bottom."The report noted that after this indicator turned negative, the average return over the next 90 days was 79%, while the median return over 90 days was 55%.

ChainCatcher news, K33 Research analyst Vetle Lunde stated that the funding rate for Bitcoin perpetual futures has been below neutral for over 30 consecutive days, with the average funding rate over the past four weeks currently at a negative level for the first time since December 25, 2022. When the funding rate for Bitcoin perpetual futures is negative, it indicates that traders are mostly betting on a decline in asset prices. However, hedging or directly shorting positions are becoming increasingly crowded, which is also a clear indicator that sellers are nearing exhaustion.The analyst pointed out that if the market follows seasonal trends, September will be a good opportunity to buy on dips, followed by a potential recovery in the fourth quarter of this year. Historically, buying on dips in September has indeed yielded good returns by the end of the year.

ChainCatcher news, Zhou Lele, the Deputy Chief Operating Officer of Victory Securities, stated that the funding rates (reflecting the interest rate paid by longs to shorts) are negative, indicating that the short positions in the contract market are stronger; meanwhile, the thin depth of the spot market shows a significant downward resistance. There is a divergence between futures and spot markets, which may suggest that short sentiment dominates the market in the short term, but there is a market support force at certain price levels. According to on-chain data, virtual assets have been transferred out in large amounts, and whales may be accumulating positions at this time. Last Monday, 273,000 Ethereum (costing about $2,500) were transferred on-chain, totaling approximately $68 million; on Friday, 44,000 Bitcoin (costing about $59,500) were transferred on-chain.

ChainCatcher news, Matrixport released a chart stating that the trading volume in the Korean market is highly correlated with the Bitcoin funding rate, as Korean trading users have significant influence in the market. As trading volume declines, the annualized Bitcoin funding rate also decreases. Recently, the trading volume has been below $1 billion for three consecutive days, which may indicate that the funding rate will further decline.However, with the approach of the Korean Blockchain Week, market activity and sentiment may rebound.

ChainCatcher message, Matrixport released a chart on platform X stating that the Bitcoin funding rate has turned negative. August (and September) has historically been a month of decline for Bitcoin, and this year seems no exception.The significant volatility in Bitcoin futures positions in May and July drove prices up. However, with the funding rate now turning negative, the market is experiencing a downward trend.Despite this, the current position open interest remains as high as $17.8 billion, compared to $16 billion in May and July, indicating that there may be more liquidations before a rebound occurs.

According to ChainCatcher news, as reported by Bitcoin Magazine Pro, after several months of positive interest rates, the funding rate for Bitcoin-denominated tokens has finally reached a healthy level. It indicates that the current Bitcoin trend is not dominated by derivatives, but rather by organic spot buying. This is a quite healthy upward trend, more likely to continue.