Traders in the perpetual futures market tied to the BNB token are exhibiting bearish sentiment in the current challenging environment. Data from Coinglass shows the open interest and volume-weighted funding rates have dropped to -0.18%, the lowest since late April. This indicates that shorts, or positions profiting from a price drop, are dominant and are willing to pay longs to keep their bearish bets open. According to Huff Haus, co-founder of Pear Protocol, “BNB is being heavily shorted.”
The native token of decentralized exchange (DEX) aggregator 1inch (1INCH) rose by more than 58% early Monday before giving back most of the gains. Trading volume hit $597 million, its highest level since October 2021. At press time 1INCH was up by around 10% over the past 24 hours. Additionally, over the same period, $3.37 million in leveraged 1inch short positions have been liquidated. The rally appears to be an extension of the uptrend that began following XRP’s supposed legal victory against the U.S. Securities and Exchange Commission (SEC) last week, which saw XRP nearly double.
JPMorgan said in a research report Thursday that the Bitcoin hashrate continues to reach all-time highs as miners compete ahead of the next halving event in the second quarter of 2024. This event will reduce the issuance reward to 3.125 BTC from 6.25 BTC, “implying a reduction in miners’ revenues and effectively increasing Bitcoin’s production cost,” the report said. Analysts led by Nikolaos Panigirtzoglou noted that while halving is seen as having a positive effect on the Bitcoin price, it poses a challenge for miners.
