Funding rate turns negative as Bitcoin drops below $64k

04/17/2024 05:30
Funding rate turns negative as Bitcoin drops below $64k

Negative funding rates signal bearish sentiment as Bitcoin struggles, reflecting traders' expectations of further price declines.

Funding rate turns negative as Bitcoin drops below $64k Funding rate turns negative as Bitcoin drops below $64k 24 seconds ago · 2 min read

Negative funding rates signal bearish sentiment as Bitcoin struggles, reflecting traders' expectations of further price declines.

2 min read

Updated: Apr. 16, 2024 at 9:17 pm UTC

Funding rate turns negative as Bitcoin drops below $64k

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

In the volatile world of cryptocurrency, perpetual futures are a go-to for many traders. These contracts don't expire, relying instead on a mechanism called the funding rate to balance market forces. Recently, Bitcoin's perpetual futures saw a dramatic shift. Typically steadied by consistent positive funding rates, a sudden plunge into negative territory coincided with geopolitical turmoil and a significant drop in Bitcoin's price. This shift in funding rates not only shows a rare bearish sentiment but leads us to wonder, what does this mean for the future of Bitcoin trading dynamics? Could this signal a more profound change in market sentiment?

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