Dec 19, 2025
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Bitcoin & Ethereum Diverge: Longs Dominate BTC, While ETH Shorts Rise
Data indicates a divergence in the Funding Rate for Bitcoin and Ethereum, with traders going long on BTC and short on ETH.
Funding Rates Divergence
- Recent market volatility saw Bitcoin's price briefly surge to $90,300 before dropping to $85,300. Ethereum rose to $3,000 but fell to $2,790.
- The Funding Rate monitors fees paid by derivatives traders on exchanges. A positive rate shows more longs than shorts, while a negative rate indicates the opposite.
- Bitcoin's Funding Rate remains positive, showing sustained bullish sentiment despite recent volatility.
- Ethereum's Funding Rate has turned negative after its price fluctuations, suggesting an increase in bearish positions.
- This shift might imply reduced risk of volatility for Ethereum, as highly leveraged long positions can lead to significant liquidation events.
Santiment notes that for altcoins to rebound, Bitcoin's Funding Rate should remain neutral or turn negative.
Current BTC Price
Bitcoin has rebounded to $87,100 following its recent drop.
