Bitcoin Funding Rates Hit YTD Lows, Bearish Trend Ending – CryptoQuant
On Binance, the largest international kriptovalyutnoy exchange, the volume of Bitcoin on Binance fell to the lowest level of the year, which showed a significant change in market sentiment.
According to CryptoQuant onchain analyst EgyHash, the exchange's Bitcoin (BTC) funding volume has remained negative for three consecutive days.
This bearish reversal was last seen in October 2023 and indicates that short positions – bets that the price of BTC will fall – are taking long positions.
CryptoQuant data showing Bitcoin funding rates on Binance. Source: CryptoQuant
RELATED: Bitcoin Rises 4% As Triple ‘Death Cross' Under $50K Triggers Warning
Implications of funding rate shifts
The amount of money on Binance has been used to measure market sentiment for some time, indicating the changing sentiment of traders based on short and long positions.
When the funding ratio turns negative in this manner, traders with short positions pay off long positions, indicating that demand for short positions is high or increasing.
According to EgyHash data, the current funding volume has “reached its highest level of negativity” year-to-date (YTD) as short-term positions dominate the “perpetual market”.
The average Bitcoin funding indicator, which compiles cash rates on all exchanges, has also turned negative – indicating a “short-term” bearish trend.
Related: World's 3rd Largest Public Pension Fund Buys $34M in MicroStrategy Shares
The feeling of depression intensified
In the year An Aug. 16 10x Research report noted a lack of institutional interest in BTC, saying institutions “seem less interested in tracking the market at current levels.”
The report assessed this institutional sentiment with the seven-day withdrawal ratio, a stable coin gauge that is a clear indicator of BTC buyer activity.
10x Research founder Markus Thielen explained that stable coin revenues are a “key signal” for fiat dollars to convert to crypto and BTC or Ether (ETH).
Related: Institutions Uninterested in Bitcoin at $58K, Metric Shows
ETFs will be positive
In the year On August 15, spot BTC exchange-traded funds (ETFs) turned positive, recording $11.11 million in revenue despite investors losing interest in Grayscale Bitcoin Trust (GBTC).
According to Sosovalue data, the total net assets of spot BTC ETFs reached $51.99 billion after the total net assets of spot BTC ETFs reached $17.33 billion.
Although volume has turned negative, these ETF figures indicate increased interest in BTC exposure to crypto from institutional and retail investors who see it as a viable digital asset.
Magazine: AI Can Already Power Bitcoin – And Threaten Bitcoin Mining
