Major cryptocurrencies experienced a significant surge on Monday evening due to a combination of factors. These factors include heightened buying activity driven by a sense of panic, anticipation of lower interest rates, and pending spot Bitcoin ETF decisions.
What Happened: The surge in bullish momentum, fueled by macroeconomic shifts has wiped out shorts and increased liquidity in the market.
Matrixport, a crypto investment services provider, saw a significant increase in bitcoin perpetual futures premium compared to the spot price. According to the firm, this trend suggests that traders are eagerly jumping into BTC, driven by the fear of missing out (FOMO) on the ongoing rally.
“Traders do not have enough upside leverage, this is the conclusion from the elevated premium that perpetual futures are trading at,” the report noted.
Perpetual futures typically traded at a premium of around 5-10% compared to the spot price throughout the year. However, this premium widened to 10-15%, and at times even reached as high as 20-30%. “This shows panic buying from traders who are closing out shorts or increasing leveraged longs,” Matrixport analysts said.
Top Gainer (24 Hour)
Cryptocurrency Gains +/- Price (Recorded 9:30 p.m. EDT) Stacks +33.58% $1.16 Ordi +28.23% $49.43 Conflux +23.22% $0.20
The global crypto market cap has reached $1.54 trillion, marking a 3.58% increase in the last 24 hours.
Stocks experienced ...