Bitcoin Bears in Control? Record Low Funding Rates on Binance Signal Market Shift

According to the latest data from CryptoQuant, bears might be in control of Bitcoin given the asset’s funding rates reaching a negative level across all crypto exchanges, including Binance. For context, funding rates are essential in perpetual futures markets to ensure the price of perpetual contracts aligns closely with the spot market. These rates can be either positive or negative, depending on market conditions. A positive funding rate implies that long position holders pay shorts, typically signaling bullish sentiment. Conversely, negative funding rates suggest shorts pay longs, indicating bearish sentiment. Related Reading: Analyst Warns: Bitcoin Nears Dangerous Territory – $40,000 On The Horizon? Funding Rates Signal Market Shift According to EgyHash, the analyst who reported this significant rise in funding rates on the CryptoQuant QuickTake platform, Bitcoin’s funding rates on Binance have dipped to unprecedented negative levels that have not been seen ever since October 2023. The analyst revealed that this prolonged negativity in funding rates, lasting over three consecutive days, highlights an intensifying “bearish sentiment” among traders. Notably, the significance of these negative rates is compounded by Binance’s substantial share in the open interest (OI) across crypto exchanges. This dominant position suggests that the sentiments reflected in Binance’s funding rates could presage broader market movements. $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 Read more

Aug 17, 2024 - 04:00

Bitcoin Bears in Control? Record Low Funding Rates on Binance Signal Market Shift

According to the latest data from CryptoQuant, bears might be in control of Bitcoin given the asset’s funding rates reaching a negative level across all crypto exchanges, including Binance.

For context, funding rates are essential in perpetual futures markets to ensure the price of perpetual contracts aligns closely with the spot market.

These rates can be either positive or negative, depending on market conditions. A positive funding rate implies that long position holders pay shorts, typically signaling bullish sentiment. Conversely, negative funding rates suggest shorts pay longs, indicating bearish sentiment.

Funding Rates Signal Market Shift

According to EgyHash, the analyst who reported this significant rise in funding rates on the CryptoQuant QuickTake platform, Bitcoin’s funding rates on Binance have dipped to unprecedented negative levels that have not been seen ever since October 2023. Bitcoin funding rates on Binance. | Source: CryptoQuant

The analyst revealed that this prolonged negativity in funding rates, lasting over three consecutive days, highlights an intensifying “bearish sentiment” among traders.

Notably, the significance of these negative rates is compounded by Binance’s substantial share in the open interest (OI) across crypto exchanges. This dominant position suggests that the sentiments reflected in Binance’s funding rates could presage broader market movements.

$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
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