Crypto Markets Stagnate as Gold and Silver Rally to New Highs

Stagnating crypto markets alongside rallying precious metals could indicate a risk-off sentiment affecting crypto more than traditional safe havens. Funding rates might become slightly negative if traders are shorting crypto to hedge against potential downside. Delta-neutral traders should monitor funding rates closely for arbitrage opportunities, particularly on BTC and ETH.

The shift to gold and silver suggests investors are seeking safe havens outside of crypto, potentially due to regulatory uncertainties or broader macroeconomic concerns. This rotation can create short-term trading opportunities in crypto via funding rate arbitrage. If funding rates become consistently negative, traders could profit by longing the underlying asset and shorting the perpetual futures. However, be aware of potential volatility spikes if broader market sentiment shifts unexpectedly. Continuously monitor open interest and volume on derivatives exchanges.