To no surprise, the funding rates across the market have gone flat or negative after this recent flush of leverage.
Especially on alts, many lost over 50% of their open interest which is absolutely insane. Nothing we've ever seen before in such a quick move.
This does leave a lot of room for the market to move before getting overheated again in the long run. Yes, we'll likely see some sharp moves up and down in the short term. But to truly get overheated again will take at least several weeks of violent upside price action.
We have had the reset. But now it's up to the bulls (and their spot bid) to get things going into year's end. A reset is nice, but it won't do anything if there's no buying in the end.
37.08K
251
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.