Bitcoin and Ether Perpetual Futures Funding Rates Remain High Despite Falling Spot Prices

Funding rates for bitcoin and ethereum perpetual futures remain high despite the sharp drop in spot prices for bitcoin and ethereum, according to a report released by QCP Capital on Tuesday. According to the report, "Perpetual funding rates on retail-dominated exchanges remain 20-30%, meaning speculators are still buying leveraged longs on the low side." However, analysts at QCP Capital said that higher funding rates could indicate that the current price correction in the cryptocurrency market still has some way to go. According to the analysts, "The forward curve remains surprisingly elevated. Even now, users can lock in a 23% risk-free yield on ETH April spot forward spreads, but we don't expect them to stay this high for long, especially if the market continues to move lower".