How BTC Perpetual Futures Funding Rates Stay Positive Amidst Recent Market Dip

IconCryptoNewsTerminal Staff04 Jul, 2024

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How BTC Perpetual Futures Funding Rates Stay Positive Amidst Recent Market Dip

Bitcoin (BTC) notional open interest has dropped by 18% over the past month, while spot prices have declined by 14% during the same period. However, perpetual futures open interest has remained above 500k BTC for the past four weeks, and the funding rate has been positive. This suggests that traders are still bullish on Bitcoin despite the recent market dip. The funding rate is a fee that is paid by traders who are holding long positions to traders who are holding short positions. A positive funding rate indicates that there is more demand to buy Bitcoin than there is to sell it, which suggests that traders are bullish on the asset. The recent decline in Bitcoin's price is likely due to a number of factors, including the ongoing regulatory crackdown in China and the recent sell-off in the broader cryptocurrency market. However, the positive funding rate suggests that traders are still bullish on Bitcoin in the long term.

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