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In a recent analysis shared on – It appears that appetite for long positions has not returned to the levels seen during the rally from November to early December. This indicates a lack of strong demand in the markets.
Funding rates act as a leading indicator within the market, with influence directly linked to market sentiment. High funding rates often indicate that traders are optimistic and anticipating future price increases, which may indicate an overheated market. On the other hand, low financing rates often indicate a bearish outlook, implying that rates may fall.
Glassnode Shown Based on the 168-hour moving average of funding rates, all major assets, especially Bitcoin, showed positive momentum early last week. In contrast, Solana continues to suffer from a declining funding rate regime, which has persisted since December.
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The lack of strong demand for long positions suggests that traders may be adopting a cautious stance, meaning the market may remain range-bound or face minor pullbacks in the coming days.
What lies ahead?
The cryptocurrency market is gearing up for a big week as investors anticipate the upcoming Federal Reserve meeting and key inflation data.
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Markets are bracing for impact as the Federal Reserve prepares to announce its next monetary policy decision at its January meeting on Wednesday. Along with the Fed meeting, the release of new inflation data scheduled for Friday will be closely watched.
The cryptocurrency market is currently under selling pressure as investors take profits ahead of the first meeting of the Federal Open Market Committee this year.
At the time of writing, Bitcoin is down 3.83% over the past 24 hours to $100,954 after falling to $97,715 in today’s trading session. Solana’s SOL and Dogecoin (DOGE) are currently down 8.46% and 10.46% respectively over the past 24 hours, while Ethereum (ETH) and XRP have lost as much as 6%.
