Bitcoin (BTC) eternal futures -financing rates fluctuates between positive and negative, reflecting market uncertainty. When Bitcoin falls and hovers around $ 80,000, dealers are looking for direction, especially after Bitcoin lost its 200-day sliding average.
The financing rate, laid down by exchanges for eternal futures contracts, determines periodic payments between long and short positions. A positive rate means long positions pay shorts, while a negative rate means shorts pay a long time.
Over the past two weeks, the degree of funding has fluctuated between positive and negative, indicating indecision. In bull markets, the speed typically remains positive. Recently, the daily financing rate hit a negative -0.006%, corresponding to an annual rate of -2%, according to Glassnode data.
Historically, Bitcoin -bundled coincides with persistent negative financing rates that typically coincide with Bearish atmosphere. Examples include the Covid-19 crash, the FTX breakdown and the China mining ban in 2021. Over the past two weeks, however, each Bitcoin-rally has asked the traders to change position, resulting in long liquidations when the price returns, which prevents a sustained period of negative financing rates.
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