Bitcoin and Ethereum Expected to Close the Year Below $44,000 and $2400 Levels
After $11 billion in annual options delivery on Friday, Bitcoin and Ethereum are expected to close the year below $44,000 and $2400 levels. The rally in BTC and ETH this year was hindered by a record rise in funding rates at the end of the year.
Bitcoin and Ethereum OI and Funding Rates
Bitcoin and Ethereum futures open interest (OI) fell after Friday’s expiry and recent crypto market selloffs this week. However, traders remain positive on further upsides.
The total Bitcoin futures OI on all exchanges is over $18 billion. BTC OI on CME and Binance are $4.81 billion and $4.31 billion, respectively. Similar figures are seen on Deribit, Coinbase, Bybit, OKX, and other exchanges.
The total Ethereum futures OI is $3.36 million. ETH OI on Binance, Bybit, and OKX is rising after a significant drop.
Kamikaz and CredibleCrypto’s Views
Crypto influencer Kamikaz shared that OI is wiped on BTC and ETH after expiry but funding remains higher due to spot Bitcoin ETF approval sentiment. He sees this as a bullish sign.
Analyst CredibleCrypto agreed with Kamikaz that the market is bullish. He clarified that high funding rates do not necessarily mean there are too many over-leveraged participants. In fact, OI has been completely wiped at levels not seen in years.
Falling Funding Rates
Funding rates are also falling from their record highs. The BTC OI-weighted funding rate chart suggests a probability of upside movement in the next few days.
Hot Take: Bitcoin and Ethereum Set to Close the Year on a Lower Note
Despite a strong rally throughout the year, Bitcoin and Ethereum are expected to close the year below certain key levels. The recent rise in funding rates has put a halt to their upward momentum. However, there is optimism among traders for further gains as open interest and funding rates adjust. It remains to be seen how these factors will impact the crypto market in the coming days.