Leader cryptocurrency Bitcoin started 2023 with hope after a nightmare year. The reasons behind the rise in BTC, which has gained 36% since the beginning of the year, are revealed by the reports prepared by on-chain analysis platforms.
According to the latest report by crypto research firm Arcane Research, the main reason for the rise is institutional investors. Although experts do not underestimate the impact of the small investor, they focused on the movements in the futures market.
According to the report, the open interest rate of Chicago Mercantile Exchange (CME), one of the world’s largest derivatives markets, BTC There is a correlation between the price. It has been determined that the effect of Bitcoin futures funds on the CME open interest rate to rise again is great.
In November 2021, when the previous peak of CME interest rates was recorded, Bitcoin was trading at $65,000. With the bear market that started in the crypto market, a decrease was recorded in interest rates.
Calm Course in Funding Rates
An on-chain data on Bitcoin also comes from Santiment. The funding rate, which is determined by the dominant side in BTC leveraged transactions, is currently close to zero.
Despite the calm in the leveraged market, Arcane Research experts pointed out that volatility in the spot market increased rapidly as of the beginning of the year.
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