Will Positive Funding Rates Push Bitcoin into a Deeper Dip? ⤵️
Bitcoin, priced at around $34,000, experienced a 15% daily #gain after Wall Street opened on October 24.
This surge was partly driven by excitement over a potential approval of a Bitcoin spot price exchange-traded fund (#ETF ) in the United States.
The market broke through resistance at $30,600 with surprising speed, setting the stage for a potential retracement. #Funding rates were in positive territory, indicating an overwhelming number of traders taking long positions, which can lead to market corrections.
The U.S. dollar index (DXY) rebounded, but Bitcoin's relationship with the DXY has become less predictable. The direction of the U.S. dollar is expected to be influenced by the October 26 Personal Consumption Expenditures (PCE) data release, which is crucial in the lead-up to the November 1 meeting of the Federal Open Market Committee (FOMC) where interest rate policy will be decided. Traders will be closely monitoring these factors.
