Bitcoin's price remains stagnant near $81,928, reflecting a 0.33% decrease from its previous close of $82,196.05. The cryptocurrency's lack of direction is attributed to a decline in derivatives activity, with Open Interest dropping from $29.09 billion on May 5 to $26.84 billion on May 11, marking a 7.75% reduction. The Estimated Leverage Ratio remains stable at 0.2358, indicating no significant risk expansion.
The Funding Rate has turned negative, intensifying to -0.01218343, suggesting bearish pressure in the derivatives market. However, this could potentially support a price rebound if the market is heavily shorted without substantial spot selling. Spot trading volume increased slightly by 2.75%, but this does not indicate significant demand growth. With volatility decreasing to 2.79%, Bitcoin's price range remains narrow, contributing to its stalled movement. A bullish continuation may occur if Open Interest expands, funding remains negative, and Bitcoin surpasses $82.3K.
Bitcoin Stagnates as Open Interest Declines and Funding Rates Turn Negative
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