Bitcoin Funding Rate Declines to Neutral on Major Exchanges
Recent data indicates that the Bitcoin futures funding rate has declined to neutral across major exchanges, signaling a shift in market sentiment.
Key Points
- The Bitcoin funding rate measures fees exchanged between long and short positions in futures markets.
- A positive funding rate indicates bullish sentiment, while a negative rate reflects bearish sentiment.
- Current analysis shows the 7-day simple moving average (SMA) of the funding rate on Binance, Bybit, and OKX has returned to 0%, indicating indecision among investors.
- Historically, similar retests of the 0% level have been followed by bullish momentum for Bitcoin.
- With the current neutral funding rate, both long and short positions face equal risk of liquidation, potentially allowing for a price rally.
Current BTC Price
Bitcoin is trading at approximately $97,200, a decline of over 2% in the past week.