Bitcoin totally reduced losses with Sunday’s drop, with the leading cryptocurrency dropping from around $ 48,600 to less than $ 46,000 on Monday morning. As of 21:00 UTC (4 pm ET), bitcoin was trading above $ 48,600 on Coinbase. But the main cryptocurrency has yet to trade above the psychologically significant $ 50,000 mark.
Much of the unstable price of bitcoin and its recent decline can be attributed to the deleveraging of futures. The anxious bulls piled up in lengthy negotiations, hoping for a quick breakdown to $ 50,000 or more. Funding rates for perpetual bitcoin futures steadily increased until February, according to market data collected by Skew, with some funding rates reaching their highest levels in the past 12 months.
Confirming this market condition, bitcoin futures saw more than $ 520 million in contracts settled in the past 24 hours, according to data from Bybit. The anxious buyback after these selloffs suggests the resilient bullish resistance of the market, after redefining highly anxious futures traders.
High positive funding rates signal an increase in long positions, while negative rates indicate a more bearish sentiment. The market tends to reconfigure itself when traders, especially in overcrowded derivative positions, become excessively bearish or optimistic.
Even though some traders may be dissatisfied with the price hustle, other market participants are enjoying themselves. Bitcoin miners, for example, achieved a record $ 354 million in revenue last week, surpassing the previous record of $ 340 million set in mid-December 2017. Network fees contributed more than 15% of that revenue .
Ether, the second largest cryptocurrency by market capitalization, rose on Monday around $ 1,820 and rose less than 1% in 24 hours from 21:00 UTC (4:00 pm ET).
Shortly after setting new records above $ 1,850, ether also declined considerably, dropping almost 10% to around $ 1,660 on Monday morning. More than $ 313 million in ether futures has been settled in the past 24 hours, by Bybit.
The DeFi sector in the household followed suit, according to Messari data. But Ethereum and the various assets in the DeFi ecosystem have since recovered, with DeFi’s aggregate performance increasing by almost 3% in the last 24 hours, by Messari.
Other alternative cryptocurrencies have also recovered from the falling market. Perpetual futures on the FTX altcoin index rose nearly 20% from Monday morning lows, completely redoing the correction.
The digital assets at CoinDesk 20 are on Monday. Notable winners from 21:00 UTC (16:00 ET):