Bitcoin's Rollercoaster Ride: From All-Time Highs to Sharp Pullbacks

Bitcoin's sharp pullback from its record high of $69,000 has led to a normalization of funding rates in the crypto perpetual futures market, with the annualized funding rates for the top 25 cryptocurrencies dropping to less than 20%. This pullback has cleared excess leverage from the market, potentially signaling a cooling period in the coming weeks. The correction forced the closure of $1 billion worth of leveraged perpetual futures bets across digital asset markets, and the market could continue to deleverage, potentially pushing bitcoin's price back to $40,000, according to one observer.