The cost of holding a bullish long position in perpetual futures tied to bitcoin has jumped to the highest since the dizzy bull market days of late 2021. Bitcoin (BTC) is currently priced significantly lower than it was in late 2021. Still, the mood in the market is as positive as it was back then. That’s the message from funding rates, a mechanism that keeps the prices of bitcoin perpetual futures contracts in sync with the spot market price. When perpetual futures are trading above spot, the funding rate is positive and holders of bullish long, or buy, positions pay bearish shorts to keep their trade open. The opposite happens when perpetuals trade below the spot price. Analysts track the funding rate to gauge the mood of leverage traders. The higher the funding rate, the more excited
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