Odaily Planet Daily News Ethereum perpetual futures contract funding rates have risen to their highest point since the global liquidation event in August, when major cryptocurrencies such as Bitcoin and Ethereum fell by more than 20% as stocks fell. Derivatives trader Gordon Grant warned that the cryptocurrency perpetual futures contract market remains vulnerable to similar over-leveraged position-driven sell-offs, which may be driven by both technical and macroeconomic factors. Coinglass data shows that the open interest funding rate of Ethereum contracts is currently 0.0116%, the highest level since July 29, when Ethereum was trading at $3,316, and its price plummeted by 22% in early August. The sudden interest rate hike by the Bank of Japan led to the unwinding of yen carry trades, triggering a plunge in global stock markets, which largely triggered that plunge. While the initial shock was exogenous in nature, Grant explained that the highly leveraged crypto linear derivatives futures market may have amplified the impact. Grant said in an interview that the cryptocurrency market would face vulnerability if another such exogenous shock occurred, similar to macro events such as the unwinding of yen carry trades that triggered liquidations in early August. He added that other factors are also affecting the market. For example, investors are cautious about a potential pullback in Nvidia and other outperforming chip stocks, a slowdown in China's recent stock market rebound, and the continued spread of tensions in the Middle East. He believes that these factors, combined with the existing leverage in the crypto market, could catalyze or exacerbate a sharp decline in the market (even if it is short-lived), especially in options-driven liquidations. (The Block)