Yesterday, funding rates fell below zero in a market sentiment reset as Bitcoin’s price declined following its new all-time high. Bitcoin Funding Rates Briefly Fell Below Zero Yesterday As per the latest weekly report from Arcane Research, the funding rates have plummeted following a spike around when BTC made a new ATH. Yesterday, they briefly went below zero. The “funding rate” is a Bitcoin indicator that tells us about the current periodic payments that futures contract traders are making between each other. When the metric has positive values, it means long traders are paying short traders to keep their positions. Such a situation suggests that the market sentiment is currently bullish. On the other hand, negative values of the indicator imply short traders are paying a premium to hold their positions. This trend may mean that the market sentiment is bearish at the moment. Now, here is a chart that shows how the value of the Bitcoin funding rate has changed in the past couple of months: Looks like the funding rates have plummeted recently | Source: The Arcane Research Weekly Update - Week 45 As the above graph shows, when Bitcoin made a new ATH around $69k earlier in the month, the indicator also showed a big positive spike. Related Reading | Bulls Giving Up? Massive Bitcoin Bid Wall Removed, What It Could Mean For BTC However, BTC couldn’t keep the momentum up and the price started fallin...
