Binance Funding Rate Suggests Market Weakness

IconCryptoNewsTerminal Staff16 Aug, 2024

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Binance Funding Rate Suggests Market Weakness

The Binance Bitcoin (BTC) funding rate has remained negative for three consecutive days, indicating that short positions are dominant in the futures market. CryptoQuant contributor EgyHash analyzed the data and found that the average BTC funding rate across all exchanges, including Binance, has also turned negative. This suggests that the market is likely to show weakness in the short term. Binance accounts for the largest share of exchange open interest (OI), so its funding rate is a key indicator of market sentiment. The negative funding rate suggests that traders are expecting the price of BTC to fall in the near future. This is in line with other recent market indicators, such as the declining price of BTC and the increasing number of short positions on exchanges. Overall, the negative Binance funding rate is a bearish sign for the BTC market in the short term.

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