Here’s all you need to know about BTC’s current funding rate
Did you catch the latest buzz in the crypto world? Last week, Bitcoin’s value soared sky-high, reaching past the dazzling $27,000 mark. The intriguing part? This spike came right after the Federal Reserve decided not to shake things up with their interest rates. Does that mean the current funding rate of Bitcoin is still promising? Let’s dive in!
Interest Rates and Bitcoin: The Connection
On Wednesday, September 20, everyone in the finance sector had their eyes glued to the FOMC meeting, wondering what the Federal Reserve would decide about interest rates. Many believed there was a whopping ninety-nine percent chance they’d keep things as they are, with only a slight one percent possibility of an increase.
For Bitcoin, these interest rate decisions are like reading tea leaves – they can hint at future price trends. Keeping rates the same might boost Bitcoin’s growth. On the flip side, increasing them might have made the crypto market’s mood a tad gloomy. What does that mean about the current funding rate of Bitcoin?
Whales in the Crypto Sea
After the big meeting, all the financial detectives started looking for clues behind Bitcoin’s massive surge. One crypto detective, Gustavo Faria from Cryptoquant, spotted something big. According to his analysis, most of the Bitcoin buying during this high-flying period came from big players – those holding between one thousand and ten thousand BTC. They were behind a huge sixty-six percent of the trading action.
Interestingly, Faria pointed out that these ‘crypto whales’ seem to be accumulating more Bitcoin. So, while some experts like those at Santiment felt that the whales were just chilling and waiting, Faria’s data suggests they’re making some big splashes. And guess what? History shows that when these whales start moving, Bitcoin prices tend to follow.
Excitement and Optimism
Data from Glassnode tells us that about eighty percent of all Bitcoin has been chilling for the past six months. With almost nineteen point five million BTC out there and just a million and a half left to be discovered, there’s a positive air among crypto enthusiasts.
And if numbers speak to you, here’s something cool – Bitcoin was recently trading at $27,093, which is a three and a half percent increase in just one day! Trading volumes also jumped by over sixteen percent.
Speaking of buzz, Kraken, a big name in the cryptocurrency exchange world, dropped some exciting news. According to a report by Bloomberg, come 2024, Kraken plans to step into the realm of traditional US-listed stocks and ETFs.
Entering Uncharted Waters
The exchange is gearing up to launch this new venture both in the U.S. and the UK. This move will place Kraken in the ring against giants like Robinhood. Once rolled out, Kraken users will get a one-stop platform, merging their crypto and traditional stock portfolios. And if they pull this off, they’ll be the first in the crypto world to offer trading beyond cryptocurrencies.
Kraken’s initiative is not just a blind leap. They’ve already secured the necessary permissions in the UK and are waiting for the green light in the US.
But with great plans come great challenges. The US hasn’t been all roses for Kraken recently. They had to halt certain services and cough up a $30 million fine over charges by the Securities and Exchange Commission (SEC).
So, as we wrap up our dive into this exhilarating crypto week, we’re left pondering: In this rapidly evolving financial landscape, what’s next on the horizon?