The funding rate for Bitcoin perpetual futures has been reset after $370 million in contracts were liquidated. Is that a good sign?
Bitcoin (BTC) experienced a 12.5% drop in price from March 14 to March 17, falling to $64,545, which led to significant buying activity around the $65,000 mark. Currently, opinions are mixed, and while the excessive leverage in Bitcoin futures has been resolved, investors are still pondering if BTC be able to surpass its all-time high of $73,755.
Many believe that investors are waiting for the U.S. Federal Reserve's (Fed) monetary policy meeting on March 20 before deciding to invest more in cryptocurrencies, despite the widespread expectation that interest rates will remain unchanged. This decision goes beyond short-term considerations, focusing on the Fed's confidence in the economy's ongoing strength.
Another key uncertainty for Bitcoin investors is when the Fed will cease reducing its $7.5 trillion balance sheet. Generally, a more expansive Fed monetary policy indicates more money in circulation, which is beneficial for risk-on assets.
