Odaily News Funding rates for Ethereum perpetual futures contracts have risen to their highest since the global liquidation event in August, when major cryptocurrencies such as Bitcoin and Ethereum fell more than 20% as stocks fell. Derivatives trader Gordon Grant warned that the cryptocurrency perpetual futures contract market remains vulnerable to similar over-leveraged position-driven sell-offs, which may be driven by a combination of technical and macroeconomic factors. Coinglass data shows that the funding rate for Ethereum contracts' open interest is currently 0.0116%, the highest level since July 29, when Ethereum was trading at $3,316, and its price plummeted 22% in early August. The plunge was largely triggered by the unwinding of the yen carry trade caused by the Bank of Japan's sudden rate hike, which triggered a global stock market crash. While the initial shock was exogenous in nature, Grant explained that the highly leveraged crypto linear derivatives futures market may have amplified the impact. In an interview, Grant said that the cryptocurrency market would face vulnerability if another such exogenous shock occurred, similar to macro events such as the unwinding of yen carry trades that triggered the liquidation event in early August. He added that other factors are also affecting the market. For example, investors are wary of a potential pullback in Nvidia and other high-performing chip stocks, a slowdown in China's recent stock market rebound, and the continued spread of tensions in the Middle East. He believes that these factors, combined with the existing leverage in the crypto market, could catalyze or exacerbate a sharp market downturn (even if short-lived), especially in option-driven liquidations. (The Block)