The financing rate of perpetual Bitcoin (BTC) future futures fluctuates between positive and negative, reflecting a market charge. While Bitcoin decreases and hovers around $ 80,000, traders see a direction, especially after Bitcoin has lost its mobile average at 200 days.
The financing rate, fixed by exchanges for perpetual term contracts, determines the perodic payments between long and short positions. A positive rate means that long positions pay shorts, while a negative rate means that shorts pay long.
In the past two weeks, the funding rate has oscillated between positive and negative, indicating indecision. In the bullish markets, the rate is generally positive. Recently, the daily financing rate has reached a negative rate of -0.006%, equivalent and at an annualized rate of -2%, according to Glassnod data.
Historically, Bitcoin stockings have coincided with sustained negative financing rates, which generally coincide with the lowering feeling. The examples include the CRASH COVVI-19, the FTX collapses and the mining ban of China 2021. Howver, in the last two weeks, each Bitcoin RALL has prompted traders to change position, causing long liquidations when the price is reversed, preventing a sustained negative period.
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