Funding rates neutral since plunge below $35,000
Funding rates did reach negative territory as BTC sold off below $38,000 and down towards $35,000. This was likely driven by fear and liquidations.However, funding rates have remained neutral since bitcoin fell below $35,000.This shows that perps have followed the spot market closely amid the shaky markets in recent days. Usually, funding rates tend to plummet following such sell-offs.Preview
Futures premiums stays below 4%
Futures basis still sit below 4% in the offshore market, mostly trailing around 3% in the offshore market.The FTX basis grew from 3% to 4% during yesterday’s mayhem in the market. Several factors might have contributed to this growth. It could be caused by growing demand for long exposure as bitcoin trades near its 1.5-year-long support, but it could also be caused by hedging activity related to the UST situation.Meanwhile, CME’s premium stays low, trailing around yearly lows. CME’s basis saw a decline towards the FOMC meeting last Wednesday, suggesting that institutional traders were concerned ahead of the interest rate hike decision.Preview