Bitcoin funding rate drops to negative levels as it falls below $64, 000 Andjela Radmilac * Just 2 Hours Ago * Read 2 minutes
Bitcoin’s struggles are reflected in the negative funding rate, which reflects traders’ expectation of further price drops.
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Updated: Apr. 16, 2024 At 9:17 PM UTC
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Many traders prefer perpetual futures in the world of volatile cryptocurrency. The contracts do not expire and rely on the mechanism of funding rates to maintain market equilibrium. Recent changes in Bitcoin’s futures contracts have been dramatic. A sudden drop into negative territory, which was usually accompanied by geopolitical unrest and significant drops in Bitcoin price, coincided with a plunge from positive to negative funding rates. The shift in funding rate not only illustrates a bearish mood, but also makes us wonder what this means for Bitcoin’s trading dynamics. This could be a sign of a deeper shift in the market’s sentiment.