Adam Back questions funding rate implications for Bitcoin market
@adam3us: Back questions funding rate impact
Adam Back, CEO of Blockstream and a prominent figure in the cryptocurrency space, raises questions about the implications of funding rates in the Bitcoin market.
The conversation unfolded on Twitter, where Back addressed the dynamics of funding rates being paid from short sellers to basis traders. Basis traders, who engage in delta-neutral strategies, collect dollar yields while effectively hedging by buying physical Bitcoin.
Back challenges the notion proposed by some industry analysts that the cost associated with funding rates could represent a form of 'paper Bitcoin'. This discussion opens up a larger dialogue on the mechanics and impacts of trading strategies within the cryptocurrency ecosystem.
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Back’s current commentary on funding rates in the Bitcoin ecosystem builds upon his prior observations of market innovation, including Metaplanet’s recent momentum in the Japanese stock market. Additionally, his earlier analysis on how crypto addresses may adapt to the advent of quantum computing reflects a broader commitment to examining both the foundational and emerging dynamics that shape the cryptocurrency landscape.
In the previous news, tweet author Adam Back discussed Japanese stock market updates.
