Funding rates at the highest level since Bitcoin’s last ATH🚨

Funding-rates-at-the-highest-level-since-Bitcoins-last-ATH

The funding rates for perpetual futures contracts are a measure of the deviation of the price of these contracts from their spot value.

Generally, this deviation occurs due to the excessive number of contracts positioned in a certain direction, forcing a higher cost to maintain these contracts.

Right now, rates are at the highest level since October 2021, when bitcoin reached its last historic price high.

This value suggests that optimism is prevailing in the market, driving a high number of futures contracts to bet on an increase in price.

However, this setup is dangerous as it can demonstrate excessively bullish sentiment and a price contraction could trigger a cascade of liquidations.