The ongoing rally is challenging market expectations regarding the impact of spot Bitcoin ETF inflows, which were speculated to propel the leading asset to break all-time highs by the end of March.
With Bitcoin exceeding $59,000 on Wednesday, marking a gain of over 5%, indications suggest that a new peak may materialize sooner than anticipated.
Funding Rate Fears vs. Spot ETF Strength
The rally is primarily driven by demand, evidenced by spot ETF volumes surpassing $3.2 billion and net inflows totaling $520 million. The rapid price increase has triggered short liquidations and sparked a speculative buying frenzy, causing funding rates to soar on native exchanges and even longer-end futures trading up to more than 16% over the spot.
According to QCP Capital’s latest analysis, the initial response from the options market was unexpectedly subdued. Traders…
