Rapidly rising funding rates indicate a long-skewed, leveraged market and elevate liquidation risk. Short-term, crowded longs become vulnerable to sharp reversals, amplifying drawdowns. In the next [time period], watch open interest and funding spikes: if rates remain elevated without spot demand, expect corrective events; if spot buyers absorb leverage, positive funding can coexist with higher ranges.
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Declining exchange BTC balances often indicate accumulation and long-term hodling, suggesting supply tightening. Short-term, this can support price floors; long-term, sustained off-exchange custody by institutions strengthens scarcity narratives. In the next [timeframe], expect reduced sell pressure and firmer support levels if the trend continues.
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Global regulatory clarity, CBDC adoption, and mainstream financial products like crypto ETFs will be major disruptors. Over the next 5 years, expect increased institutional involvement, leading to more market stability but also more regulatory scrutiny.
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