Peak fear? Bitcoin funding rates crash to lowest levels in 7 months

[newshunter]

Peak fear? Bitcoin funding rates crash to lowest levels in 7 months

The funding rate of Bitcoin dropped to a level unseen since September 2020, signaling fear in the market.

Source: Peak fear? Bitcoin funding rates crash to lowest levels in 7 months

Would appreciate your opinion about this

[Fenix]

I believe that the higher the price of bitcoin rises, the higher the risk of its fall will rise and the higher the amplitude of price fluctuations will be. With an increase in the price of bitcoin, the amount of invested funds will grow, which means that cryptocurrency holders will be more worried about the possibility of losing their money and will react to the least negative information regarding cryptocurrency.
It is also quite possible that the domino effect will occur, when investors will try to sell the cryptocurrency as soon as possible, while it has not completely fallen in price. This possible period will be the most terrible and destructive for the cryptocurrency.

[Richard_1]

I think that the fear of buying Bitcoin is justified by the too high price. Not every investor can afford the risk of investing in a cryptocurrency with high volatility. But sometimes the risk is justified by high returns)