Bitcoin price falls as demand for leveraged long BTC futures and stablecoins drops.
Bitcoin (BTC) has been stuck in a narrow range since Aug. 8, and unable to surpass $62,000 while reinforcing support at $58,000. This consolidation reflects growing uncertainty among traders, especially as the BTC futures funding rate remains negative, indicating low demand leverage from buyers.
The question arises as to whether this indicator alone can dictate the cryptocurrency market’s trajectory or if historical patterns suggest an impending rally.
A key concern for Bitcoin investors is the positive performance of the S&P 500 index, which is currently just 2.5% below its all-time high, and gold, which is trading a mere 1% below its record level. In this context, it’s challenging to rationalize Bitcoin being 19.5% below its March 14 peak of $73,757, regardless of whether the cryptocurrency is viewed as a risk-on asset or a hedge against potential disruptions in the US debt situation.
