"With BTC's break of key resistance and it's multi-month range, the market is certainly in a state of euphoria. Perp funding is very elevated and basis yields are at seven-month highs," QCP Capital said in a Telegram broadcast.
"While we remain structurally bullish, we are cautious of any pullbacks, especially from leveraged washouts," the trading firm added.
"An elevated funding rate means perpetual futures are trading at a premium to the spot price. Standard futures contracts are also trading at an annualized premium (basis) of over 15% across all exchanges, including the CME."
"Per QCP Capital, historically such sharp spikes in the so-called basis yields have not lasted very long."
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