Bitcoin funding rates are presenting a bullish outlook, according to recent data from crypto analytics platform CoinGlass.
Funding rates on major cryptocurrency exchanges like Binance, OKX and Bitget are in the positive, with only CoinEX showing a negative rate. Binance boasts a rate of 0.0041%, OKX at 0.0029% and Bitget at 0.0034%, with CoinEX being the outlier at -0.0013%. The positive funding rates indicate that traders are willing to pay more to long Bitcoin, expecting a price increase.
On the surface, this data may not seem telling. However, when we delve deeper into the derivatives data, the bullish indicators become clear.
The long trade volume is up by a substantial 43.30% to $18.92 billion, whereas the open interest has also nudged up by 1.69% to $14.38 billion. These percentages suggest heightened interest from traders in buying Bitcoin in the hope of an increase in its price.
Tomiwabold OlajideLooking at the long/short ratios further accentuates the bullish stance. Binance BTC/USDT's account ratio stands at 1.6709 and OKX BTC's at 1.46, meaning that there are more long positions than short ones. These figures corroborate the idea that a majority of traders are expecting Bitcoin's price to surge.
A closer look at "rekt" data, which refers to the amount lost by traders due to sudden price changes, shows that more shorts have been liquidated than longs in the last 24 hours, implying that the market is currently favoring those who are bullish on Bitcoin. The overall analysis of these funding rates and associated data signals bullish Bitcoin market sentiment.
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Godfrey Benjamin
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov