<strong>Opinion:</strong> Market Sentiment Remains Exceptionally Cautious, Surge in Ethereum Leverage Demand

BlockBeats News, on June 11, despite Bitcoin's price recovering to near its all-time high of $110,000, K33's Head of Research, Vetle Lunde, pointed out that market sentiment remains unusually cautious, with traders displaying a general lack of risk appetite.

Funding rate indicators show that Binance's BTC/USDT perpetual futures experienced a negative daily funding rate on both last Friday and Sunday, with a weekly funding rate of just 1.3% annualized. Such conditions typically occur near localized bottoms. Historical data suggests that Bitcoin does not peak during periods of negative funding rates, and this positioning often signals further upside potential ahead.

Meanwhile, Ethereum speculators are "eager for leverage," as VolatilityShares' 2x leveraged ETH ETF is gaining increasing popularity. Since April 8, the fund has added an exposure equivalent to 305,100 ETH, which accounts for 18.3% of U.S. ETH ETF holdings and two-thirds of CME ETH open interest.

Kraken's Head of Derivatives, Alexia Theodorou, added that although funding rates are slightly bullish, the market has not yet formed a clear directional consensus, with the long/short ratio still far below January's peaks. A more DeFi-friendly stance from U.S. regulators could act as a structural tailwind for ETH in the upcoming months. (The Block)