- Bitcoin’s 94.5% supply in profit signals potential for profit-taking while Ethereum’s steady funding rates hint at upside momentum.
- Diverging funding rates show traders shorting Bitcoin for pullback and longing Ethereum in hopes of a delayed rally.
- Polymarket’s upcoming $200M round reflects rising institutional confidence in Ethereum-powered real-world Web3 applications.
Crypto markets are showing clear divergence as top assets reflect mixed investor sentiment. According to Santiment, Bitcoin’s percent of supply in profit has reached 94.5%, while Ethereum follows at 88.7%. Meanwhile, Cardano trails at 46.5%, highlighting underperformance. This disparity signals unique positioning across assets and suggests varying phases of accumulation, overvaluation, or investor fatigue.
Source: Santiment(X)
Bitcoin’s strong profit margin indicates widespread investor gains. Hence, it creates an environment ripe for profit-taking. Historically, such levels often precede short-term pullbacks. Ethereum, still slightly lagging behind, shows signs of catching up. Its funding rate balance reveals long positions dominate, indicating bullish sentiment. Traders are clearly hoping ETH mirrors BTC’s momentum.
Diverging Funding Rates Fuel Mixed Market Behavior
Santiment’s latest funding rate chart tracks data from late May through June 2025. It shows Bitcoin and Ethereum moving in separate directions. BTC’s rate volatility surged during early June as traders opened short positions. This led to increased liquidation risks. Consequently, Bitcoin experienced wild price swings.
Source: Santiment(X)
Ethereum, however, has shown relatively stable funding rates. Green annotations show long positions consistently outpaced shorts. This skew signals cautious optimism from traders. Moreover, ETH’s steady rate balance contrasts Bitcoin’s wild volatility. Hence, ETH may be primed for upward moves rather than sharp spikes.
Additionally, the funding rate divergence highlights differing trader expectations. Bitcoin appears overheated, with many bracing for a correction. Conversely, Ethereum presents an opportunity. Long traders expect catch-up performance as the altcoin market rebalances.
Polymarket Set to Break Ground with $200M Round
Meanwhile, Ethereum’s ecosystem continues to rise. Polymarket, a Web3-native prediction market, is reportedly finalizing a $200 million funding round. This would push the company’s valuation above $1 billion, confirming unicorn status.
The potential round follows a successful May 2025 fundraising effort. That round saw $70 million raised across Series A and Series B phases. Founders Fund and General Catalyst led these rounds. Backing from Vitalik Buterin and Joe Gebbia further boosts credibility.
