Fundstrat executive: Bitcoin is temporarily consolidating, but there is no bubble in the current market

Odaily News Sean Farrell, head of digital asset strategy at market research firm Fundstrat, wrote in a recent report that while it is possible to see a temporary consolidation in Bitcoin, many of the previous signs of a bubble are not present in the current market. According to CoinGlass data, the annualized funding rate (i.e., leverage cost) for Bitcoin perpetual futures soared to 59% on November 12, the highest level since March this year, and fell back to around 12.9% last Friday. However, Sean Farrell pointed out that historical data shows that this rate can usually be maintained at 20%-50% for several weeks before losing momentum, "as long as it is combined with capital inflows and strong spot demand, this level of leverage can persist." (marketwatch)