Bitcoin Looks Bullish As Funding Rates Turn Positive

Data shows funding rates for Bitcoin have turned positive, a signal that might indicate market sentiment is bullish among traders. Bitcoin Funding Rates Turn Positive, While Derivative And Spot Reserves Move Down As pointed out by a CryptoQuant post, the funding rates seem to be slightly positive for the BTC market right now. The Bitcoin funding rates are the payment that traders need to pay so that they can keep an open position. This additional, periodic fee is based on the difference between the perpetual contract market and the spot price. These funding rates are used for perpetual futures contracts by all cryptocurrency derivatives exchanges. When the value is positive, longs have to pay a fee to the shorts. While when it’s negative, the opposite stands true. Related Reading | Three White Soldiers: The Signal That Shows Bitcoin Bulls Are Preparing For Battle Because of this, a positive funding rate implies many traders are bullish as they have to pay a premium to keep their positions. In contrast to this, the market sentiment is bearish when the funding rate is negative. Now, here is a chart that shows the trend in the funding rates for Bitcoin: The various indicators seem to be bullish | Source: CryptoQuant As the above graph shows, the funding rates seem to be slightly positive at the moment. This could indicate there is bullish sentiment among traders right now. Another thing to notice in the chart is t...