According to Galaxy Digital boss Mike Novogratz, the cryptocurrency market is currently flashing some "warnings signs."

The billionaire has specifically mentioned that the funding rates are sky-high.

Funding rates are fees that cryptocurrency traders pay based on the gap between spot and futures markets. 

High funding rates typically indicate that the overall market sentiment is bullish (and vice versa). Bulls have to pay more in order to be able to maintain their long positions. 

According to data provided by cryptocurrency analytics platform CoinGlass, the current Bitcoin funding rates range from 0.0176% (Binance) to 0.0725% (dYdX). These rates are notably higher when compared to less volatile market conditions. 

"A paradigm shift" 

Cryptocurrency traders are anticipating more volatility in the near future, with the launch of Bitcoin ETF options emerging as a major catalyst. According to Bloomberg, Nasdaq listed options on BlackRock's $30 billion IBIT ETF earlier this Tuesday. 

In his recent social media post, Novogratz described the launch of the ETF as a "paradigm shift." 

"That’s a big story. Will be interesting to see how fast retail starts punting.  We are in a paradigm shift," he said.

IBIT has already recorded a few hundred million in options volume, according to leading ETF analyst Eric Balchunas. 

Vetle Lunde of K33 Research believes that spot Bitcoin ETF options are "a clear catalyst" for Bitcoin bulls. "A clear catalyst with the IBIT options launch creates a solid setup for a $100k attempt shortly," he said.

The leading cryptocurrency is currently changing hands at $92,418, just 1.3% away from its record high.