maartunn
BTC: Funding Rates hits a 14-month high 😱🥵
Funding Rates for Bitcoin hits a 14-months high. Funding Rates is the amount paid by traders in a long position to traders who are in a short position. It is a mechanism to keep the price of the perpetual futures contract nearby the asset price. ▶ If funding is positive, traders are betting on higher prices. The future contract is trading above the asset price which means that you pay to be long ▶ If funding is negative, traders are betting on lower prices. The future contract is trading below the asset price which means pay to be short It's clear that traders are betting on higher prices. How-ever, analyzing the Funding Rates chart suggests that might not be the case. In the previous occasions where Funding Rates were as high as today, Bitcoin had a pullback.