Overall Market Analysis!
Analyzing key data of market FOMO sentiment - leveraged Bitcoin interest rates, which hold extremely important significance. Whenever the Bitcoin price approaches its peak, it is often accompanied by a sharp rise in leveraged Bitcoin interest rates. The root of this phenomenon lies in the fact that each round of Bitcoin's rise is actually the result of collective market funds acting together, with the main players controlling the pace and pausing at the right time, while numerous small retail investors charge forward in the final stages, pushing the price to extremes.
However, the current situation is rather peculiar. The Bitcoin price has already rebounded to near its peak, and many strong altcoins have also broken through the previous highs before the waterfall market, yet the leveraged lending rates in the market show no signs of improvement. Coupled with the previously mentioned sluggish funding rate conditions, this is severely inconsistent with the current market's upward momentum.
This unusually strange phenomenon can be roughly attributed to two main reasons. First, on December 9, a long position valued at 1.5 billion was liquidated, severely damaging the confidence and financial strength of many retail long investors. After this blow, these retail investors have lost the courage and confidence to boldly leverage and charge forward again, leading to a depressed state in both the funding rates of the contract market and the leveraged rates of the spot market. Second, the current market's rebound has not yet reached a level sufficient to attract many market participants to fall into FOMO sentiment again. In the operational rules of financial markets, retail groups often exhibit characteristics of blindly following FOMO at price peaks, while easily falling into panic selling at price lows.
Summary: The more the retail investors are afraid to enter the market at such times, the more it is worth accumulating at the bottom. The market manipulation by large players is always unexpected, but it is essential to manage positions reasonably to prevent unforeseen events.
