Hassan Maishera
TL;DR
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Bitcoin has lost more than 4% of its value over the last 24 hours and is now trading below $42k.
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The market funding rate has declined, indicating that overleveraged traders have been shaken off.
BTC Dips By 4%
Bitcoin, the world’s leading cryptocurrency by market cap, is starting the week in a bearish trend. It has lost more than 4% of its value over the last few hours and is currently trading just below the $42k mark.
The poor performance was sustained over the weekend when BTC failed to stay above $44k.
Data obtained from Velo Data indicated that funding rates for BTC, ETH and other major cryptocurrencies were above 0.15% last week, indicating an overheated leveraged market. Funding rates above 0.10% represent excess bullish leverage or overcrowding of long positions.
The funding rate has now dropped below 0.1%, indicating that the market has returned to normal after shaking off overleveraged traders.
Ether, the second-largest cryptocurrency by market cap, has also lost 4% of its value in the last 24 hours and is now trading at $2,239 per coin. Other major altcoins including XRP, SOL, LINK, MATIC, and TON, are all down by more than 5% over the last 24 hours.
Despite the broader market underperforming, Avalanche’s AVAX is up by more than 5% in the last 24 hours, making it the best performer amongst the top 20 cryptocurrencies by market cap. AVAX is up by 57% in the last seven days and is now trading at $35.18 per coin.
The total cryptocurrency market cap has dropped below the $1.6 trillion mark for the first time in nearly two weeks and currently stands at $1.57 trillion.
