The cryptocurrency market remains unusually stable with an overall value of $570.36bn a rise of 0.4% in the last 24 hours. Transactional volume is down by 3.64% at $112.36bn. The price of Bitcoin remains at a healthy $19,242 with a market dominance of 62.6%. In a notoriously volatile market this stability is eerily quiet – at least with negative or positive volatility we usually have clear market direction. With this in mind we can take a closer look at the market through various metrics available to the more discerning investor. Lets take a look.
The funding rate is the fee paid between the long and short sides of a perpetual contract. If the rate is in the positive longs pay shorts and if it is in the negative shorts pay longs. The concept of perpetual futures contracts was introduced by BitMex in 2017 and the purpose of the Funding Rate was introduced as an incentive to maintain the derivative’s price as close to spot as possible.. As of today the funding rate of Bitcoin perpetual futures contract is 0.031692% (CoinGecko 7/12/2020) which while not a huge positive is above the norm of around 0.01%. This shows that Bitcoin is above average bullish at the moment signaling price stability over $19,000 with bullish sentiment slowly increasing.
Google trends show that the current IoT (Interest over Time) ratio stands at 39, the highest being 100. The search metrics show that popularity peaked last Monday and has been slowly declining in the past week. The google search for Bitcoin is most popular in Nigeria with Austria, South Africa and Switzerland following closely behind.
Source: Google Trends
Bitcoin age consumed
This metric tracks the renewed activity of dormant Bitcoin addresses and suggests that if any of these accounts show signs of activity then the Bitcoin stored therein is on the move. Recent data from Glassnode reveals that the amount of Bitcoin that moved at a price above $18,000 in the last month is 5 times higher than the amount in 2017.