Crypto Funding Rates Reset After Bitcoin’s Sharp Pullback From $69K

Crypto funding rates have reset after Bitcoin’s sharp pullback from the $69,000 level. The correction not only cleared out excess leverage from the market but also normalized funding rates in the crypto perpetual futures market. This cooling down period could potentially pave the way for a more sustainable move towards record highs. The annualized funding rates for leveraged bets in perpetual futures have dropped to below 20%, significantly lower than the triple-digit figures seen just a few days ago. This indicates that the overheated market has cooled down, creating an opportunity for a more stable climb. Funding rates surged above 100% earlier in the week, reflecting over-optimism and often observed at temporary market tops. However, with the market normalizing, there is a possibility of further deleveraging in the coming weeks. One expert even suggests the potential for Bitcoin’s price to drop back to the mid-to-low $40,000 range. Regardless, caution is advised as things can always appear bullish at the peak.