Bitcoin is above $77,000 and altcoins made gains today, albeit weakly. While positive earnings reports throughout the week supported the stock market, they did not produce the expected results in cryptocurrencies. Investors continue their cautious stance due to the influence of tensions with Iran. Funding for Ethereum has reached the FTX crash period. So what does this signal of extremism tell us?
Stock market broke a record
S&P 500 It reached a new all-time record level by exceeding 7200 points. Artificial intelligence enthusiasm managed to overshadow Iran tension in the stock market. The current picture is not surprising, with trillion-dollar giants announcing much better figures than expected and the impact of over half a trillion dollars of AI-related investments to be made this year. Although the enthusiasm for artificial intelligence has constantly come to the fore with discussions of “the bubble has burst”, we have seen greater rises after each retreat.
US stocks had their best month since 2020. Since March was a bad month, there is the potential for April gains to continue in May. But the rapid rise is likely to cause a pullback at some point. If this happens in the coming days, discussions about the AI bubble bursting will occupy the agenda again. The US’s upcoming attack on Iran may be the trigger for this.
Ethereum (ETH)
ETH has recorded a correction of approximately 65% from its last peak. BTC And stablecoins Excluding total crypto market cap (TOTAL2) fell 51%. Ethereum is currently 30 percent above its February 6 low, and despite this recovery, investors remain unconvinced. Aggressive short positions continue to accumulate.
The on-chain analyst with the pseudonym Darkfost reminded that Binance funding rates remained constantly negative even during the recovery phase.
Such a dynamic is the last FTX crash and during previous bear markets (usually occurring at the end of bear markets).
“Today’s environment is far from comparable, but the monthly average funding rate on the Binance exchange remains at -0.0018. This reflects a strong consensus among investors who still do not believe in the recovery and prefer to take bearish positions despite the observed corrections.
It’s a risky bet, and some are already paying the price; As seen in increasing short liquidation volumes. As ETH continues its upward momentum, short positions are increasingly being forced out of the market. This dynamic could further fuel Ethereum’s recovery as on-chain short liquidations continue. “Markets rarely reward such strong consensus.”
Let’s see if the days when short position holders make easy money are over.
