K33: "Bitcoin Investors Remain Defensive Despite Near All-Time Highs"

As Bitcoin (BTC) attempts to break through $110,000, analysis suggests the market remains cautious.

According to The Block on the 11th (local time), K33 Research reported, "Bitcoin is rising toward $110,000," but also noted, "the Bitcoin funding rate has turned negative. The market remains in a cautious state."

The weekly funding rate and leverage indicators also point to a defensive market atmosphere. The report stated, "Bitcoin's weekly funding rate was just 1.3% per annum," adding, "this level has only been seen near the lows over the past two and a half years." Furthermore, "BITX, the 2x leveraged Bitcoin Exchange Traded Fund (ETF), currently holds exposure equivalent to 52,435 BTC," and continued, "this is a significant decrease compared to the peak of 76,755 BTC set in December last year."

While leveraged ETF inflows surged during Bitcoin's rallies in March and December last year, leveraged ETF inflow has stagnated recently. The report went on, "Weak funding rates and a reduction in leveraged inflows reflect investors' skepticism," and added, "the release of the U.S. May Consumer Price Index (CPI) and next week's Federal Reserve meeting may have had an impact."