The post Bitcoin’s Perpetual Market Sees Slight Rebound As Market Sentiment Improves appeared on BitcoinEthereumNews.com.

After a period of stagnation and downtrend, the perpetual market of Bitcoin has experienced a brief rebound in the past few weeks. With traders cautiously bullish about the crypto asset’s near-term potential, this comeback was followed by a period of elevated volatility and price consolidation. A Gradual Comeback In Bitcoin’s Perpetual Market Recent on-chain data shows that the Bitcoin perpetual market is once again regaining its momentum, signaling positive advancements around the digital asset. Market expert and the host of the Crypto Banter show, Kyle Doops, shared the development in the Bitcoin Perpetual Market Directional Premium metric with the crypto community on the X (formerly Twitter) platform. The recent shift in the key metric is in tandem with an improvement in market mood as Bitcoin tries to rebound from its ongoing consolidation phase. The brief uptick reflects expanding investors’ interest due to rising trading activity and a small increase in funding rates. According to Kyle Doops, by mid-September, the cumulative monthly premium for long-side contracts had dropped from a high of $120 million in March to about $1.7 million, and it had only slightly recovered to $10.8 million ever since. BTC perpetual market experiences a modest recovery | Source: Kyle Doops on X Furthermore, the expert noted that this upswing still falls well short of January 2023 levels, which indicates diminishing speculative enthusiasm and a reduction in leverage demand during the market correction. However, as confidence in the asset strengthens, this brief uptick could be seen as an indicator of renewed upside momentum for Bitcoin, with market conditions persistently stabilizing. Kyle Doops also reported a notable increase in the Estimated Leverage Ratio (ELR) in another X post, which now takes stablecoin reserves into account. Specifically, this rise in the metric suggests a higher risk associated with Bitcoin derivatives. As a…

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Filed under: News - @ October 21, 2024 11:16 am