CryptoQuant: BTC & ETH Funding Rates Reach Record Lows, Analyst Says

• Bitcoin and Ethereum funding rates reach 4 and 6-month all-time lows.
• Shift from USDC to BTC causes BTC premium on Coinbase.
• BTC rebounds above $20,000 despite market turbulence and bank closure.

CryptoQuant, an on-chain data analytics provider, tweeted on March 12 that Bitcoin and Ethereum funding rates have plummeted to 4-month and 6-month all-time lows, respectively. According to an accompanying analysis from a crypto analyst, the shift from USDC to Bitcoin has resulted in a hefty BTC premium on Coinbase (NASDAQ:). This, in turn, has caused a severe negative funding on perpetual contracts.

$BTC funding rates plummets to a 4-month low.$ETH funding rates drops to a 6-month all-time low.Live Chart https://t.co/T5p1Nxmc6o pic.twitter.com/NiKp212pXj

— CryptoQuant.com (@cryptoquant_com) March 12, 2023

Despite the uncertainty in the market due to the recent closure of Silicon Valley Bank by the Federal Deposit Insurance Corporation (FDIC), Bitcoin prices have managed to rebound above $20,000. The 14-day relative strength index (RSI) finding a floor at 27.00 is believed to be the primary factor behind this surge. At press time, the RSI is standing at 28.46, with Bitcoin trading at $20,279.45.

The Ethereum market is also experiencing a strong rebound, with ETH prices climbing back up above $1,400 following a dip to $1,378.53. This resurgence is believed to be driven by Ethereum bulls buying the dip, leading to a rebound from oversold territory.

It is expected that the high volatility in the market will persist in the upcoming days, which could cause Bitcoin’s value to fluctuate above and below $20,000 throughout the weekend.

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