Victory Securities: Funding Rates show that shorts are more dominant in the contract market, and the virtual asset market needs a key turning point

Zhou Lele, deputy chief operating officer of Shengli Securities, said that the negative Funding rates (reflecting the interest rate paid by longs to shorts) indicate that shorts are more dominant in the contract market; while the thin spot depth shows obvious resistance to decline. There is a divergence between futures and spot, which may indicate that short sentiment dominates the market in the short term, but there is a bottoming force in the market at a certain price point. According to on-chain data, virtual assets are transferred out in large amounts, and whales may accumulate chips at this time. Last Monday, 273,000 Ethereum (costing about $2,500) were brought to the chain, equivalent to about $68 million; on Friday, 44,000 Bitcoin (costing about $59,500) were brought to the chain. According to experience, the outflow of Bitcoin is often accompanied by a rebound in prices. The reasons may include: investors have become more positive about future price expectations and choose to actively buy and build positions during this period. The virtual asset market is in need of a key turning point to usher in off-site buying forces, break through shocks, and move out of direction. The market's hesitant wait-and-see attitude may also provide value investors with an opportunity to absorb low-priced chips.