CryptoQuant: Bitcoin traders put hold on leveraged bets

The Bitcoin funding rate has gone negative for the first time since October 2023.

Citing data from CryptoQuant, the negative rate traders pay to open new long positions in the perpetual futures market underscores the moderation of Bitcoin demand after a record demand for BTC in March.

In March, the price of Bitcoin reached a new all-time high at $73,000. However, BTC has since corrected by almost 13%, trading at $63,400 at the time of writing, according to CoinMarketCap.

CryptoQuant notes that net inflows into spot Bitcoin ETFs have decreased recently. The Bitcoin halving has reduced miner rewards, decreasing traders’ desire to open long positions.

“It certainly means that the desire for traders to open long positions has eased.”

Julio Moreno, CryptoQuant’s Head of Research

Buyer enthusiasm for BTC has also cooled, in part due to rising risk aversion related to tensions in the Middle East and expected delays in Federal Reserve rate cuts.

The funding rate cut coincides with a decline in daily inflows into U.S. spot Bitcoin ETFs. On April 24, the net daily capital outflow in the spot Bitcoin ETF sector amounted to $120.64 million. Only two crypto funds received an influx of capital: Fidelity Bitcoin Spot ETF (FBTC) with $5.61 million and the ARK Invest/21 Shares Bitcoin fund at $4.17 million.