The Spot Bitcoin ETFs are slowly starting to notice how scarce bitcoin is. If we include Grayscale, the Spot Bitcoin ETFs have already collected 746,831 bitcoin since launch. On Monday, another 9,534 bitcoins were added. As a result of these enormous inflows, the bitcoin price is starting to rise, because demand is currently much greater than supply (scarcity).
The falling bitcoin-ether spread is music to the ears of altcoin traders, Coindesk reported today. The funding rate spread has collapsed, indicating an increased willingness of traders to speculate further in this cryptocurrency.
The funding rate can be explained as the interest rate that is paid periodically between long and short positions. This mechanism ensures that the price of the futures contract matches the spot price. If the market price of the futures contract is above the spot price, it is the turn of the long positions to finance short positions. If the market price is below the spot price, the reverse applies: short positions finance the long positions.
Source: https://bitcoinmagazine.nl/nieuws/goedemorgen-bitcoin-koers-bereikt-hoogtepunt-van-61-000-op-grote-cryptobeurzen
