Bitcoin prices slumped to a nine-week low just below $57,000 on May 1, shedding a further 4 on the day. The asset has now bled a whopping 11 since the same time last week.

Market dips and flush-outs are not uncommon for crypto assets, but Glassnode analyst James Check thinks this time is different.

Large derivatives-led deleveraging events were a big feature in the 2021 bull market and have been seen on several occasions this year, the last one in mid-April.

However, Check observed that they did not cause this week’s crypto crash in a post to X on May 2.

Derivatives Not The Cause

“Funding rates have cooled off gradually, not violently, which is very healthy to see,” he said before adding:

“It suggests we didn’t see a massive futures margin call yesterday.”

Funding rates are fees set by derivatives exchanges to maintain the balance between the contract price and the underlying asset price.