Inflows and Funding Rates' Firm Selling Signals

Inflows-and-Funding-Rates-Firm-Selling-Signals

Fed members forecasted the year-end rate in 2023 to be 3.6% on average in March, but it was 4.6% yesterday. The persistence of QT will probably be the most significant barrier to emerging new trends in risk assets.

Two data sets marked the selling pressure both in Bitcoin and Ethereum this week: Exchange Inflow and Funding Rates.

BTC and ETH exchange inflows have increased recently, especially ETH, just before the Merge (on September 15). These unusual inflows to exchanges have been exerting selling pressure.

Both currencies' hourly funding rates were significantly negative, which indicated that traders in derivatives markets were ready to sell short. Additionally, as the Merge neared, funding rates for ETH were the worst ever recorded.

In addition to the two sets of metrics above, we continue to see increasing activity from whale sending coins to exchanges, substantiating the selling pressure.