Bitcoin Funding Rates Indicate Bullish Trend Ahead
Wednesday, 11 September 2024, 10:36
Bitcoin Funding Rates and Market Trends
Recent analysis shows that Bitcoin funding rates have flipped negative, which historically signals a buying opportunity. According to the K33 report, average returns after such negative funding periods tend to be around 79%. This statistic supports the case for a bullish year-end for Bitcoin.
Understanding Perpetual Funding Rates
- The perpetual funding rate is a mechanism that ensures the price of Bitcoin futures aligns closely with the spot market.
- When rates turn negative, it indicates that more traders are betting against Bitcoin, often resulting in a price correction.
The current state of the market could lead Bitcoin to find its bottom soon. Investors are advised to keep a close watch on these funding rates as they can provide clues on future price movements.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.