NYDIG recently looked at the fundamentals of the Bitcoin and cryptocurrency market rally, noting that funding rates for BTC perpetual swap contracts jumped to “highest levels since the peak of the ETF-fueled rally in March.”
Notably, as BTC prices hover around $90,000, funding rates have “moderated somewhat,” and while not “persistently positive” as during the March rally, they remain “above historical averages.”
In addition, the report states that stablecoins are an important way for investors to convert "cash into cryptocurrencies, especially offshore cryptocurrencies." After the election, the total circulation of stablecoins "increased significantly by $6.2 billion." This shows that new funds "poured in from the sidelines to buy digital assets such as Bitcoin."
The report also stated that most stablecoin issuance "comes from USDT rather than USDC, as USDT is the main quote currency on offshore exchanges. Onshore trading venues tend to rely on the US dollar as the quote currency, transferring US dollars to exchanges through traditional banking channels (ACH, wire transfers)." As cryptocurrency prices rise and demand for stablecoins grows, USDT prices "have now turned from a discount to a premium", which once again shows that investors have increased demand for the digital asset ecosystem. (Crowdfund Insider)

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