Bitcoin (BTC) price continues to move above this level, rising above its new peak of $73,000. However, there is an interesting movement in the market. Bitcoin’s big investors and “whales” continue to take their profits and move their capital into major altcoins such as Solana (SOL), BNB Coin, Avalanche (AVAX), etc., which have achieved double-digit gains in the last 24 hours.
Bitcoin comment came from QCP Capital
Singapore-based cryptocurrency company QCP Capital provides important data regarding the current situation of the Bitcoin market. According to the analysis, while the BTC price is hovering around its recent peaks, funding rates and futures are declining significantly. Key takeaways from QCP Capital’s analysis include:
- Permanent funding rates have fallen significantly, returning to low levels.
- March/April futures fell below 30%. Futures on Binance recorded lower rates than Deribit.
The decline in funding rates points to a potential reversal in leveraged long positions, raising the question of whether it could trigger a downward move in spot prices. However, another possibility is that the decrease in leverage levels may pave the way for a new rise in spot prices.
Funding rates are very critical
While it remains unclear what exactly will happen, QCP Capital emphasizes the difficulty of sustaining high funding rates and expects further market normalization. Therefore, the firm offers a strategic recommendation for market participants to consider selling more spot-forward spreads before rates return fully to normal.
QCP Capital’s analysis offers valuable insights into Bitcoin’s market dynamics. It sheds light on the complex interplay between price movements, funding rates and leverage levels in the cryptocurrency ecosystem. For market participants caught up in these dynamics, QCP Capital’s insights offer valuable guidance to make informed decisions on cryptocurrency trading and investment strategies.
Capital rotation to major altcoins: SOL, BNB and AVAX
A major trend in the cryptocurrency market is capital rotation into major altcoins. Significant overnight gains are observed on SOL, BNB and AVAX. Especially the self-reinforcing loop that BNB creates with the launchpool mechanism is remarkable. It is seen that BNB investors earned a significant amount of airdrop and invested in buying more BNB tokens by selling their earnings.
In this way, investors effectively increase their returns in anticipation of future launchpool events. Considering the frequency of Launchpool events, this compounding effect can be said to occur on an almost weekly basis. cryptokoin.com According to data, BNB coin price is trading at $612 and analysts are already predicting $700. Capital rotation into major altcoins reveals the change in investor preferences and the dynamic structure of the cryptocurrency market.
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