Indecisiveness in Funding Rates Hinders Market Direction despite High Leverage Ratio

Indecisiveness-in-Funding-Rates-Hinders-Market-Direction-despite-High-Leverage-R

On-chain metrics recorded a relatively higher volume of outflows from the exchanges in the last week, specifically from Huobi Global. Although these might be wallet reorganizations within exchanges, they boosted market activity due to a lack of positive sentiment.

Besides high-volume outflows, the estimated leverage ratio reached an all-time high. This shows the dominance of derivative market activity because of the lack of new retail investors. However, the relatively 'neutral' funding rate seems to be the reason why the price movement has not yet found its direction despite this week's substantial exchange outflows and high leverage ratio.

On October 13, the U.S. CPI prints for September will be made public. Core CPI is anticipated to rise even more, to 6.5%, even though the headline YoY (8.1%) is predicted to be lower than last month's (8.3%). Due to the higher leverage ratio in on-chain data, next week's price volatility is probably going to be relatively high.