Bitcoin Funding Rates at Highest Negative Level 🔻
Recent data from CryptoQuant suggests that Bitcoin’s funding rates have reached the highest level of negativity this year across various exchanges, with Binance notably standing out. Funding rates play a crucial role in perpetual futures markets to ensure alignment between contract prices and the spot market.
- Positive vs. Negative Rates
- Positive rates: Longs pay shorts, signaling bullish sentiment
- Negative rates: Shorts pay longs, indicating bearish sentiment
EgyHash’s Analysis on Funding Rates 📉
EgyHash, an analyst on the CryptoQuant QuickTake platform, highlighted the unprecedented negative funding rates on Bitcoin, particularly on Binance. These negative levels have not been witnessed since October 2023, indicating a potential shift in market dynamics.
BTC funding rates have reached the highest level of negativity YTD on Binance
“Binance has the largest share of open interest (OI), this could indicate a bearish market sentiment for the short term.” – By @EgyHashX
The current stalemate in Bitcoin’s price action has left the cryptocurrency trapped in a range between $59,000 and $56,000 after failing to reclaim the $60,000 psychological level post the August 14 dip.
Despite minor fluctuations, Bitcoin has largely remained stable over the past day, recording a modest decrease of 2.6% and trading around $58,015 at the time of writing.
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