Market Trends and Funding Rates
Bitcoin has remained below $91,000 since Tuesday, even as equities benefit from strong U.S. economic data. BTC's inability to gain upward momentum amid weak leveraged long demand has left traders questioning how long the $88,000 support level can hold.
Annualized funding rates for Bitcoin perpetual contracts stood at 7% on Thursday, slightly below the typical neutral range of 6%–12%. While there has been a slight recovery from near-zero levels recorded on Monday, a strong demand for bullish leverage has not materialized.
Macro Environment and Market Sentiment
Traders’ cautious outlook is partly due to the U.S. Q3 GDP growth of 4.4%. A strong economy typically drives corporate earnings and fuels equity gains. Continuing this trend, the number of continuing unemployment claims dropped by 26,000 to 1.85 million for the week ending January 10.
Options Market and Hedging Demand
Despite weak sentiment, demand for downside protection through Bitcoin options has not surged significantly, indicating that professional traders are maintaining accumulation strategies even amid uncertainty.