maartunn
BTC: Funding Rates hits a 6-month high 😱
Funding Rates for Bitcoin hits a 6-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 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 asset price which means pay to be short And at this moment, Funding Rates are very high. Traders are betting on higher prices and are willing to pay a serious amount of interest. That doesn't have to be bearish perse, but when price start to move against them they might be forced to get out their position or it will be liquidated Definitly something to keep an eye on in the coming days 👀