With risk assets in the financial sector currently looking vulnerable, market experts have identified economic factors that could put bitcoin in a similar light and push it into a “slow bleed environment.”, risk assets are beginning to look vulnerable due to concerns that United States authorities may not cut interest rates soon. These assets, including BTC, were dented last week after regulators released stronger-than-expected jobs data.
Besides the forthcoming meeting and report, funding rates are currently high in bitcoin perpetual futures markets, indicating that traders are paying a premium to open long positions. The rising bitcoin CME futures open interest and the ETF inflows suggest that traders are leveraging the arbitrage opportunity between futures and spot markets.