The rate of perpetual Bitcoin financing (BTC) fluctuating between positive and negative, reflecting the uncertainty of the market. While Bitcoin decreases and hovers around $ 80,000, traders are looking for a direction, especially after Bitcoin lost its mobile average at 200 days.
The funding rate, fixed by exchanges for perpetual term contracts, determines periodic payments between long and short positions. A positive rate means that long positions pay shorts, while a negative rate means that shorts pay long.
In the past two weeks, the funding rate has oscillated between positive and negative, indicating indecision. In the bullish markets, the rate is generally positive. Recently, the daily financing rate has reached a -0.006% negative, equivalent to an annualized rate of -2%, according to Glassnod data.
Historically, Bitcoin stockings have coincided with sustained negative financing rates, which generally coincide with the lowering feeling. The examples include CRASH COVID-19, the collapse of the FTX and the mining ban of China 2021. However, in the last two weeks, each Bitcoin rally has prompted traders to change positions, causing long liquidations when the price is reversed, preventing a sustained period of negative financing rate.
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