Bitcoin was pushing higher Monday, having sunk to a low of $60,000 over the weekend, down from its all-time high near $67,000 last week.
Bitcoin was trading 4% higher than it had been over the previous 24 hours, at $62,900. Over the weekend, Stack Funds‘ COO, Matthew Dibb, identified the significant drop in investment rates as the most notable indicator.
“This is extremely bullish given where we are,” added Matthew Dibb.
The weekend saw smaller funding rates on key exchanges, allowing traders to utilize greater long exposure on bitcoin.
Crypto exchange Binance explained funding rates as the payments to long or short traders depending on the variation between the current price and the perpetual contract market.
When funding rates decline, it’s generally a signal that demand from investors for leverage (borrowed funds) to wager on price rises is decreasing – indicating the market is cooling down.
The lower funding rates also make it more affordable for traders to take on new leveraged positions.
“I think the momentum is still there,” said Dibb. “The recent downturn was required to calm down speculators.”
Bitcoin is still down 6% from its all-time high of $66,974.77 set last week on October 20th.
In contrast to Dibb’s expectations, Laurent Kssis, the director of CEC Capital, a crypto-financial services firm not affiliated with Cumberland Mining or any other such company, believes that the market will drop below $50,000 before resuming its rise.
The price is expected to rise even more after the launch of the third bitcoin futures exchange-traded fund (ETF), set to occur on Tuesday, from VanEck, which will trade under the stock symbol XBTF.
The first bitcoin ETF was approved by the US Securities and Exchange Commission (SEC) in December, with ProShares being the first to trade last week.
On Friday, another bitcoin futures ETF from Valkyrie Investments debuted. On the day, other cryptocurrencies, including ether (ETH), Solana (SOL), and Cardano’s ADA are all up between 1% and 11%