According to Mike Novogratz, CEO of Galaxy Digital, the crypto market is sending some "warning signs."
Mike Novogratz – CEO of Galaxy Digital
The billionaire particularly noted that the funding rate is currently at a very high level.
The funding rate is the fee that traders must pay, based on the difference between the spot market and the futures market. A high funding rate typically reflects market optimism. At that point, bulls have to pay a higher fee to maintain their long positions.
According to data from CoinGlass, the funding rate for Bitcoin currently ranges from 0.0176% (Binance) to 0.0725% (dYdX), significantly higher than when the market was less volatile.
"Major turning point"
Cryptocurrency traders are expecting volatility to increase significantly in the near future, especially as Bitcoin ETF options are rolled out, creating an important catalyst. According to Bloomberg, Nasdaq has officially listed options related to BlackRock's $30 billion IBIT ETF on Tuesday.
In a recent social media post, Novogratz called this event a "major turning point."
"This is a big story. It will be very interesting to witness the pace at which retail investors enter the market. We are entering a transformative phase," he emphasized.
According to Eric Balchunas, a leading ETF analyst, the IBIT fund has seen options trading volume reach several hundred million USD.
Vetle Lunde, an expert from K33 Research, stated that the launch of Bitcoin ETF options is a "clear stimulating factor" for the bulls.
"The IBIT options provide a strong catalyst, laying the groundwork for the possibility of Bitcoin soon reaching the $100,000 threshold," he said.
