Peak fear? Bitcoin funding rates crash to lowest levels in 7 months
The funding rate of Bitcoin dropped to a level unseen since September 2020, signaling fear in the market. The funding rate of Bitcoin (BTC) has dropped to levels not seen since September 2020 as the price of Bitcoin plummeted below $52,000 on April 18. Quant trader and analyst Lex Moskovski says it shows fear has returned to the market.According to the data from Glassnode, the average Bitcoin futures funding rate across all exchange dropped to as low as around -0.03% on SundayWhat is funding rate and why does it dropping matter?Bitcoin futures exchanges use a mechanism called "funding" to....
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Crypto market sentiment has dropped into the far negative once more. This has been one in the making ever since the Terra crash had begun and investors had scrambled to leave the market. A culmination of this and speculations that the market is headed into one of the longest bear trends ever recorded has now seen sentiment fall to levels not recorded since 2020. In The Extreme Fear Region Now, the crypto market sentiment has not been positive for a while. Most of the last two months have been spent in the fear territory and April had closed out in extreme fear. Nevertheless, the scores on....
Bitcoin funding rates have remained low even when the price of the digital asset has rebounded. The trend for the previous week showed that investors remained extremely wary of the market, and there has not been a change for the new week either. This coincides with the general market sentiment falling back deep into the fear territory. This report takes a look at where the bitcoin funding rates are currently and what it says about the market. Funding Rates Remain Below Neutral Back at the beginning of August, the bitcoin funding rates had finally recovered to neutral, speaking some hope in....
Bitcoin funding rates for the past two months have entered one of their worst streaks yet. During this time, there have been no positive funding rates, and the best that the market has seen has been funding rates at a neutral level. However, even now, reaching neutral levels have proved incredibly hard for funding rates, taking a deeper dive with each passing week. Funding Rates Remain Below Neutral The last time bitcoin funding rates had been in the neutral territory had been at the beginning of August. Since then, funding rates have consistently returned below neutral, with some....
Bitcoin funding rates had taken a plunge at the beginning of May. While this had not been a pronounced bear trend at that point, the price of BTC was already showing some signs of weakness. That weakness has now seen the digital asset plunge below $30,000 for the first time in 2022 and back up. However, funding rates that had returned to neutral had remained unmoved by this volatility in the market. Bitcoin Funding Rates Are Unshaken Bitcoin had seen some massive sell-offs around the $35,000 level. This was mainly triggered by investors panicking that they may lose more of their holdings....
On-chain data shows the Bitcoin funding rates have observed a rise again, suggesting that another long squeeze may be in store for the crypto. Bitcoin Funding Rates Show Relatively High Positive Value As explained by an analyst in a CryptoQaunt post, the current positive funding rates may mean the price could observe a decline soon. The “funding rate” is an indicator that measures the periodic fee that Bitcoin futures traders are paying each other. When the value of this metric is greater than zero, it means long traders are paying a premium to short investors to hold on to....